41.65% is the average tax percentage withheld on overtime wages. This number is derived after adding federal (approx 28%), state (approx 6%), and payroll taxes (7.65%). However, since the federal overtime tax is proportional, the more you work : the more you pay. This current form of taxation effectively punishes hard working Americans, in hourly positions, who put in OT hours, especially those working more than 10 OT hours per week.
We petition the Obama administration to reduce the current federal OT income tax to a FLAT 14% thus allowing the working class to take home nearly 50% more of their OT wages. This would in turn reward hard work, instead of penalize it; as the current form of OT taxation does. This influx in take home pay would increase spending, thus improving the economy
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