According to my math, a first year driver making $37,000 a year takes home more than a $40,000 year

If this is right, then a first year driver making 37,000, before takes, will take home $31,450 that year, while a first year driver making from $38,000 to $41,000 before taxes will take home less.

Not really that big of a deal if you're just trying to get experience but it's something to think about I guess.

 

Using my English comprehension skills, the title to your thread makes no sense.

 

My figures based on the company paying you straight with no perdium .

So 37000 and let's figure 52 weeks out on the road with 6 days a week .

52x6=302. Per dieum is what 53 a day now ?

302x53=16006.

37000-16006=20994 taxable income. You will not use your 6000 personal deduction because your itemized per dieum is greater.

Social security paid by you is roughly 8 percent.

Adjusted gross of 20994x8 percent is 1679, you need to pay for SS.

Tax rate is 10% on your 1st 10,000 and 15% on remaining income from 10,000 to 39,999.

So 10994x 15=1649

Remaining 10,000 taxed at 10% is 1000

So total tax commitment is SS =1669
15% federal income tax is. 1649
10% federal income tax is. 1000
For a total tax burden of 4318 leaving you with a net of $32682

Another 3 to 5 thousand is not going to make you fall into another tax bracket.

You don't start paying 25% until your adjusted gross income is over 37750 and than you only pay 25%percent on that amount over. Anything under is paid at the 15 or 10% rate.

 

I guess I didn't look at the new 2016 rates but my figures are close

 

Read the thread and you will see it makes perfect sense.

 

Here is something else to think about: An average truck driver in 1980 made just over $38k a year. Adjusted to 2016 dollars that's $110,000!!

 

I agree it is low but as long as companies keep recruiting drivers by the dozens they're not going to change a thing.

 

No. This is a big misconception people have about tax brackets. When you get into a higher tax bracket, the increased percentage is only taken out of the money earned in that bracket. The rest is taxed at the lower bracket it falls under.

Otherwise, people earning 10 bucks more than the cutoff will be penalized by thousands of dollars. It doesn't work that way. Look up the "tax tables" to see what you really pay. It gradually goes up the more you make, hence the term "progressive taxation".

My income is in the 25% bracket, but my "effective tax rate" (the actual percentage paid) for federal taxes is much lower. That's because a portion is taxed at 10%, and a portion is taxed at 15%. And all that happens after deductions and exemptions lower the amount to be taxed.

 

Never mind all the extraneous factors, the point is still valid ... There are wage increase slots that can have a negative financial impact on the worker

All this is by design BTW for both social engineering and separating more workers from more money.

 

Thanks, I never knew that.