https://nypost.com/2021/11/05/waitress-says-she-made-1-cent-in-6-weeks-at-restaurant-job/

@VolcelPolice you can send me to horny jail now.

  • Mardoniush [she/her]
    ·
    3 years ago

    So...how does this work? Here (Aus) there's a minimum taxable income of about 18k a year. Then you have a progressive income tax at a fairly low percentage and a medicare levy. Definitely wouldn't come to more than 30% of income.

    That's before substantial low-income tax credits, though you don't get that back until the end of the year.

    Did she make a bunch more earlier in the year? Does the USA just have flat taxes?

    • Parzivus [any]
      ·
      3 years ago

      99% sure that either the article or the waitress is wrong, that's definitely not how taxes work in the US either

    • emizeko [they/them]
      ·
      3 years ago

      FTA:

      The federal minimum wage for tipped employees across the United States is $2.13 an hour. However, in Tennessee, federal, Social Security and Medicare taxes are deducted from earned income. That left Liny with a measly $0.01 from her employer.

      • Mardoniush [she/her]
        ·
        3 years ago

        Yes, I can read. But traditionally its deducted as a percentage of earned income. a 20% tax rate above the threshold, a 10% superannuation contribution, 2% medicare levy etc.

        Trying to work out how someone on minimum wage is paying a 99.99% Tax rate on those combined levys, unless they're flat dollar amounts. The math simply doesn't work out.