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Radical Idea concerning payroll tax collection

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tadmjones

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Given today's technology payroll taxes can be collected electronically. We are on our third generation of wage earners to have weekly deductions taken from their paychecks by their employers. I can't imagine many of those people realize how mandatory deductions came to be , let alone that it is not an inherent feature of a capitalistic society. Weekly deductions by employers were legislated during WWII, to help fund the war effort and were passed on a temporary basis set to expire after the end of hostilities. Currently employers are required to make deductions from each pay issuance, weekly paychecks I think is a practical norm. The employers are required to report and remit these amounts on a monthly basis, which I think was intended to 'sweeten the pot' for the employers' exceptance of the system in that they could escrow the holdings and earn interest on the roughly monthly float.

Prior to the adoption of this system tax day ,April 15 th , was the day each citizen was required to figure their tax liability and remit those amounts on a yearly basis. Which meant that employees were paid their gross wages on a weekly basis, leaving the full amount of their wages to their own discretion as to spending. While the amount of governmet spending has increased in both complexity and amounts exponentially since the employer deduction/withholding system was instituted, it still operates on the premise the government receives the withholdings on a 30 day cycle , federal employer withholdings are due the 12th of every month.

Without changing any rates on payroll deductions employees could receive their gross wage amounts and then be responsible for remitting the taxes on a monthly or even weekly basis. Which would have no effect on the aggregate amount remitted to the federal and state governments, it may actually lessen the time lag. With modern banking and communication devices systems could be developed along the lines of ATM machines or kiosks where the individual would enter the amounts 'owed' and authorize the transactions.

Imagine the political acumen the populace would quickly glean from just being consciously aware of the rates of deductions. Imagine the types of politicians they would most likely gravitate to, those who could explain to them 'you know line 1on your weekly form, well if we adopt my plan I could half that amount ect.."And it would work in the converse, obviously, "if you adopt his plan line 2 will increase by 20% ect..."

I believe not being consciously aware of the deductions and rates lolls too many citizens into complacency, "oh you can't fight cityhall you know". The current system also makes employers unwilling arms of the governments' tax collection czars, it is easier to threaten and cajole employers than have to try and control the whole number of wage earners.

So far a fairly vague idea , but whaddya think?

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