I saw a little piece in the paper last week.  I cannot attest to it's accuracy, but I don't doubt it either.   The article stated that the amount of taxes that should have been collected on all the un- taxed, undeclared income, would be in the neighborhood of $345,000,000,000.  That is  third of the stimulus/bailout amount.

Leaving tax payment obligations completely up to the individual is sure to be a failure.  Just look at the percentage of the population who can't budget from one paycheck to another and are broke before pay day.  I'm not talking about min wage employees who are truly income challenged.  I'm talking about the wage earner who's priorities are so screwed up that they have snow mobiles, a ski boat and various other extravagant toys but aren't willing to afford health insurance for their family.  I am sure we can all think of simmilar examples.

Having taxes witheld from your paycheck is not so dissimilar to a bank requiring a  mortgage being set up through escrow so that insurance and propery taxes are automatically part of your house payment.  Naturally this is to assure the mortgage holder that their  interest are protected.

Ultimately, it would be nice to rely on people to do the right thing on their own.  I just don't think our society functions at that level of propriety.  That is also why we need so much fine print in our contracts.

Oh, ramble, ramble ramble..... Sorry.

Johnny C

It should not be the responsibility of an employer to meddle in the personal tax obligations of their employees. The government does it and threatens us with imprisonment and fines if we don't collect it on their behalf.

It is nonsense. Just because that is the way it was set up does not mean it's right.

Citizens need to have more skin in the game and have to physically write the tax check.

Andy,
Are you also saying that it should not be the employers responsibility to report to the IRS how much an employee was payed?

Johnny C

Posted By John Christensen on 16 Apr 2010 04:01 PM
Andy,
Are you also saying that it should not be the employers responsibility to report to the IRS how much an employee was payed?

Johnny C

I am not opposed to sending a report to the IRS, but the IRS makes me their employee by making me collect, process and validate all withholdings.  If I do it incorrectly, I pay a fine.  It is nonsense.  Should not be my responsibility.

In fact I could lower prices if I didn't have to deal with that aspect of my business.

I guess I look at it this way.  The services that are provided to us that enable us to be in business (fire and police protection, schools to educate our work force, a military to protect our freedom and national interests, among others) is a service provided to us by a vendor (the govt.) and a direct cost of doing business.  It happens to be calculated based a formula using employee wages to determine how much is owed.  You write a check or checks, when due based on the calculated amount due.  I believe it is the same process for all businesses.  It is an even playing field in that regard.  It is also, more or less, a guarantee that the vendor gets payed what they are owed.  It may be the hair on the beast, but I don't think it can be seperated.

Imagine leaving the payment of taxes solely up to the willingness of the taxpayer.  I think that would be similar to filling your cart with groceries and expecting to write a check for the merchandise when you get home.  It might have worked in Mayberry, because you know Aunt Bea is as honest as honey is sweet.  I just doubt that system would work in a society as complex as what we have today.

Johnny C