SInce there seems to be general agreement that today’s inflation adjusted price of gas is rougly the same …
Since the MPG of today’s cars has significantly increased, if you’re looking at the “gas cost per mile” a case can easily be made that your gas cost has actually significantly decreased. i.e. A 100 mile trip in a 2020’s 24 MPG vehicle would use half the gas of a 1970’s 12 MPG vehicle.
On the related tax issues, if because of higher fuel efficience we’re consuming half the gas of 50 years ago that also means that we’re collecting half the Gasoline Taxes, which is used for maintaining our roads and bridges. So if you’re wondering why that old bridge hasn’t been maintained, well that’s your reason.
On the Income Tax, as the Slate article mentioned, as the amount of wealth has become more concentrated the tax burden has increasing shifted to the Middle Class. i.e. If your population of High Wealth taxpayers paying essentially zero taxes has increased and the Poor can’t pay more in taxes, well who’s left to pick up the burden?
Finally, while taxes may have a marginal effect on a taxpayer’s willingness to recieve additional income, I haven’t encountered anyone yet who declined more money or retired “because the taxes were too high”. I’m pretty sure the Rolling Stones and Taylor Swift aren’t cancelling any concerts or reducing ticket prices because their taxes are too high.
Well, on flat rate pay which is 100% straight pay no matter how many hours, at least in my area, a mechanic turning 75-80 hours a week makes good money, every hour raises their pay about the same amount, but once they hit that number they start loosing money if single, meaning turning 100 hours a week doesn’t Net pay them much more than turning 80 hours due to them being in a higher tax bracket… So a lot of times if they hit 75-80 hours on the 4th day of work then the 5th day they take it easy cause money wise it is not worth it… I worked with a guy that used to slack off the 1st 3 days so the others could get their hours in (unless needed) and then on Friday he turned 25 hours and Saturday turned 30 hours ever week… Turning more hours didn’t net him much more money so he figured why bother… That is all because of making more money puts you in a higher tax bracket and it just doesn’t make since to do it…
Entertainers are in a whole different world for tax’s than we will probably ever be…
That faulty reasoning is rampant in the trades. The worst case scenario is that for every additional hour of flat rate pay, the tech is taking home $0.76 (federal). And that’s if they’re making over $95K in taxable income (99% aren’t). How is that not worth it?
+1
Even though my '71 Charger was an excellent car, I could only eke-out 17 mpg on a long highway drive. Around town, it averaged 12 mpg–and that was with the smallest (328 c.i.) V-8.
By 2010, my Outback (with the 3.6 liter H-6) regularly returned 23-24 mpg around town, and I could occasionally wring-out 29 mpg on a long highway drive.
Now, with my PHEV, a 100 mile trip might yield–at its worst–40 mpg, and sometimes as much as 70 mpg–depending on road conditions.
Because of EVs, PHEVs, and hybrids, the amount of gas being used nowadays is at an all-time low for modern times, which means that–like it or not–gas taxes are going to have to be increased in order to maintain roads and bridges. Some states are contemplating a special annual tax on EVs because they use the roads, but consume zero gas.
Because generally speaking the effort and energy to flag hours 81-100 is significantly higher than the effort and energy to flag hours 41-80, which is higher than hours 21-40, etc…
I’ve seen dealership pay plans address this, for example pay for hours 1-30 was $20, 31-40 was $22, 41-60 was $24, etc. Of course the numbers would be higher in this day and age.
In Virginia, The state has implemented the “Highway Use Fee (HUF)” to collect extra fees because high MPG vehicle and electric vehicles use less or no gas and therefore are not paying “their fair share to maintain the highways…” They base the rate on the average vehicle being driven 11,600 miles a year.
If you have to pay this additional fee (or tax…) depends on the make, model, age, and power plant of the vehicle…
You pay the HUF if you have a fuel-efficient vehicle, which is a vehicle that has a combined fuel economy of 25 miles per gallon (MPG) or greater;
Or…
Your vehicle was made in a year in which the average combined MPG rating for all vehicles produced in that year is 25 MPG or greater…
The following vehicles are exempt from the HUF…
A. Vehicles with a combined MPG rating less than 25 MPG; B. Motorcycles; C. Mopeds; D. A vehicle with a gross weight greater than 10,000 pounds; E. A vehicle that is owned by a governmental entity…
I have 5-vheicles, the '86 Harley Davidson Motorcycle is exempt as all motorcycles are exempt from this fee… The '86 Toyota is exempt due to “A” above, "combined MPG rating less than 25 MPG ", and the Dodge Ram might get 25 MPG if I shut the engine off and coasted downhill for 25-miles… L o L . . . so it is exempt…
However, our '19 Toyota was tagged for a $33 fee and the '20 Honda was tagged for an additional $30 fee due to their High MPG ratings…
Not that I own one but a 100% Electric Vehicle but Virginia charges an EV owner for $117…
As Paul Harvey used to say, “Now the rest of the story…”
I know there are states that charge a lot more than Virginia charges and there are even some states that have yet to implement this tax burden on its citizens… So I am not complaining… I do not believe Virginia is anywhere as “Tax Happy” as some states are… For instance, the state collected more state income tax in 2022 than was needed to run the state… Instead of the politicians running around like crazed banshees trying to spend that “Boni” funds on whatever tickled their fancy, every Taxpayer (filing joint…) who actually Paid Taxes in 2022 received a $400 refund check last month, those filing Single received $200. People who only file tax papers to receive refunds based on tax credits, did not qualify for this refund…
The pay scales that address this are addressing the issue of increased effort beyond 20 hrs., 40 hrs., etc., which I totally understand. This is tough work. But, it has nothing to do with income taxes. Tax rates are based on annual income, not weekly income. You pay the same income tax on every dollar you earn on your first 40 hours/week as you do for hours 41-100, as long as you’re in the same tax bracket. Once you hit the next tax bracket, you’re making the same take-home on hours 1-40 as your are on hours 41-100 and so on.
I just can’t imagine anyone, with a solid understanding of income taxes and personal finance, saying that a 2% increase in income tax rate is a disincentive to make more money. If someone is happy with taxable income of $45K, then they can avoid the 10% increase in tax rate on additional dollars of income. But, they’re also missing out on the income. Personally, I wanted to make as much as I could and taxes were a necessary part of that.
When I lived in Va. Beach, there wasn’t a week that went by that I didn’t get a tax notice, either from the state, the county or the city. Some were a tax amount that was less than the postage stamp on the envelope, but it was annoying all the same.
As someone who has lived squarely in the middle class tax bracket for most of my life, I find it a bit doubtful, that a normal, middle class person would be tracking their income so precisely that they would tell the boss, “Sorry, I can’t work any overtime, I’ve already made too much money this week…” L o L . . .
Yes, as you make more income, your tax rate increases, but only a little bit and only on that extra money that you make that put you into that higher tax bracket…
The average auto mechanic salary in Virginia is $58,500 per year or $28.13 per hour. Entry level positions start at $41,600 per year or $29.00 per hour while most experienced workers make up to $83,200 per year or $40.00 per hour. (These values assume a 40-hour week…)
Contrary to my previous posting, the Tax Table Threshold amounts have increased this year. Meaning that if you made exactly the same amount this year as you did last year, your tax liability would be less (small consolation for all the inflation…).
The new increased Tax Table Thresholds are 12% up to $11,600, 12% up to $47,150, 22% up to $100, 525, 24% up to $191,950, and if you are making almost $200k a year, I imagine your accountant is keeping track of your hours for you… L o L . . .
So, based on the above dollar amounts, it does not matter if you are the average or most experienced mechanic, both of these mechanics are in the same tax bracket… Only the entry level mechanic would be in a lower tax bracket and rightfully so…
Continuing, the Average Mechanic could work an additional 1,490 hours a year or 29-hours a week or almost 6-hours overtime a day (that’s almost 14-hours a day…) before earning enough money to hit the next higher tax bracket…
And the Most Experienced Mechanic could work an additional 433-hours a year or 9-hours a week or almost 2-hours overtime a day (that’s almost 10-hours a day…) before earning enough money to hit the next higher tax bracket…
So, based on this information and if those Average Mechanics work so long and so hard for their take home pay for the Average Mechanic to break into the 22% Tax Bracket their actual take home pay for the very last hour would drop from $24.74 to $21.95 when the hit that magic 22% tax Bracket.
And the Most Experienced Mechanic take home pay for the very last hour would drop from $35.20 to $31.20 when the hit that magic 22% tax Bracket.
I would hope that these folks are maximizing their pre-tax deductions… Just some to consider…
Healthcare Insurance, Health Savings Accounts, Supplemental Insurance Coverage, Short-Term Disability, Long-Term Disability, Dental Insurance, Vision Benefits, Child Care Expenses, Medical Expenses and Flexible Spending Accounts, Life Insurance, Commuter Benefits, Retirement Funds (401(k)s and IRAs…), Tax-Deferred Investments (especially when the employer offer a matching contribution…).
For the uninitiated, Pre-tax deductions are taken from an employee’s pay before taxes are withheld. These reduce taxes owed and increase take-home income by lowering the income that is taxed.
Now, all of this was based on a 40-hour workweek and no accounting was made for overtime pay and I will be posting another topic concerning the pay a mechanic receives based on the actual hours spent on the job and the rate that the shop charges for their work based on the Flat Rate Schedule…
If you consider $190K anything other than squarely middle class I invite you to support a family of 4 in some sort of comfortable fashion. Remember, fast food wages are $20/hr.
Gosh, you’d need an accountant or financial advisor to find your way through all that. Remember, we’re naught but humble mechanics. But seriously, unfortunately the mass of the crowd doesn’t have that level of understanding. Most still over-withold and wait for that big tax refund every April. That’s something I’ll never understand.
I cannot speak for Virginia Beach… I believe they are trying to be all things to all people. Right now, they are fighting internally if they should allow an Indian Tribe to buy land, and then annex it to the reservation and put a casino on it… The Virginia Beach politicians are all being “wined and Dined” by the New Jersey casino corporations drooling to get their hands on managing another casino… Sounds like an episode of the “Yellowstone” TV Series…
The VB Pols are all hawking the jobs and the tax revenue the casino will generate, with little notice that the folks living day to day, hand to mouth are the most likely to be using that casino and therefore creating a whole new needy, and hungry class of poor folk needing money to pay the rent and buy food after the pay check is lost in the casino…
And don’t start me on the Virginia Beach Convention Center or the money they dumped trying to get a pro sports team there…
But back on point. I say Virginia (and I’m talking the state…) is not tax happy and besides the $400 or $200 state income tax rebate they sent every tax payer, they also offer benefits to veterans (and if you are not one, you probably do not care…, but…). Last year the state allowed retired veterans to exempt $10,000 or their military retirement pay from state income tax. This year, it’s going up to $20,000, and $30.000 next year, and finally up to $40,000 of their military retirement pay will be exempt from state income taxes.
Additionally, 100% disabled veterans are exempt from property tax on their primary resident and the primary vehicle is also exempt from property tax and these two exemptions extend to the spouse if the veteran predeceases the spouse.
Now, as a retired Air Force Veteran, I have lived in eleven different locations across this country and some states do offer some of these tax benefits, but in some cases it’s a joke how little they actually offer…
I hope this posting does not turned into a “My State is Better than yours…”, I know some states offer much better tax benefits to its citizens and Virginis ranks right in the middle of the pack at number 26th in the tax rankings for the country.
Googling the most tax friendly state shows Wyoming at the top of the list and the least tax friendly state to be is California base on Income tax, excise tax, payroll tax, estate tax, gift tax, local taxes, property tax, sales tax, etc…
But I do not live in any of these other locations and I have never received a tax rebate previously, so it was a nice surprise…
I see a lot/most techs (that I know or worked around/with) watch their hours many times a day, mainly due to wrong names getting put on their work, meaning you write the WO up and hang it on the board, I grab the ticket and work it up, suddenly you sell a 12 hour ticket due today and it is lunchtime, then you sell the ticket I was just working on, you had already put my name on it but I am swamped and Sam is a good friend so I pass the work off to him, he does the work and finishes it up but you forgot to change the work Sam did over to his name while billing out the customer, Sam checks and sees he didn’t paid his 5 hours, so he has to go to you for a ticket correction… This is on a Monday and since Sam and myself normally turn 75-80 hours a week, by Saturday he may have forgotten about it until his check is missing 5 hours the next week… Starting to get the picture, so yeah lots of techs in a high volume shop with a lot of techs have to keep up with every ticket and hour to make sure they are being paid for what they do… We did most all the ERAC vehicles and they paid 0.8 hours each, it was nothing to do 3 an hour, so a low level tech could turn 2.4 hours for every hour worked, if he worked 48 hours that week that is 115.2 flat rate hours he just made, don’t think for a minute that he is not keeping up with every ticket…
Most mechanics don’t work 40 hours a week unless in a government, dealer, specialty or indy shop… Our techs are required to work a min of 48 hours a week… I used to see techs check hours after every vehicle they worked on gets billed out. also they don’t wont to be paid for work they did not do, if missed and goes on there paycheck, then next week it is taken out of their paycheck… That can change your tax bracket when up in hours, when you are talking about 10-15 hour tickets…
So know they don’t use an accountant to check their pay once a year, that is checked multiple times a day, normally when waiting for a ticket to be sold or finish being written up…
Unless you are a flat rate tech you probably don’t understand…
We aren’t doing better because our “needs” and “wants “ have been redefined. Ive spent more money at McDonalds or grabbing sodas at the convenience store this month than my parents did in their lifetime. If mom didnt get it on Double Coupon Wednesday at the Grocery Store then we didnt have a chance of getting it until the next week. Gas wasn’t wasted driving 20 miles out if the the way to save 4 cents a gallon on some app and to get a free toy when you gassed up, not too mention no annoying pre-pay.
I just went all Old Man “Uphill Both Ways” Bitchy on here ….my apologies.
I’m pretty sure the Rolling Stones and Taylor Swift aren’t cancelling any concerts or reducing ticket prices because their taxes are too high. 
But seriously, unfortunately the mass of the crowd doesn’t have that level of understanding. Most still over-withold and wait for that big tax refund every April. That’s something I’ll never understand.