Originally Posted by
Buck Rogers
Not sure I understand all this "talk" about fix QOL, "I'm happy with the pay rates".
I think one point that we have been missing is inflation, which has been historically low. Let's assume that inflation is 3%(pick your own number). so if one is making 200k a year then you would have to make 206K next year to "keep up with inflation" ?..........that is a fool's bet. By the time I pay the taxes on that $6000 increase to "keep up with inflation"....I'm still losing out
Consequently, pay rates must go up by at least 1.35 time the inflation rate(even more if you live in a state with state tax)(CA it's broaching 12%)(and union dues).....for these individuals need to go up about 1.5 times the inflation rate just to maintain status quo with inflation.
I just have to say something here because the bad math bothers me.
Let's use a 30% tax rate just for ease of numbers.
If you make $200,000 a year you are paying $60,000 in taxes, giving you a take home of $140,000. If you have a pay increase to account for inflation taking you to $206,000 (a 3% increase), you are now paying 61,800 in taxes giving you a $144,200 take home, which is 3% more than the previous take home. The only time adjusting your pay at the inflation rate results in "losing out" is if you change tax brackets.
The idea of larger increases doesn't bother me, but your reasoning is not correct.
I'll also add that only pay rates don't automatically fix QOL issues. If someone just cares about time at home, pay rates do nothing if they can't drop trips or bid for more days off. If they want better deadhead rules, they lose out if they have to pay for them each time since (as already mentioned) it's after tax.