Paycheck Withholding: A Con on Taxpayers

Fox News ^ | 8/29/02 | Radley Balko

[jimkress]

About a month ago, I wrote a column criticizing politicians for giving the government more power over the accounting practices of private industry.

That's because when it comes to "cooking the books," as they say, our elected leaders are regular Bobby Flays.

[MamaLucci]

Ending government withholding of income taxes is the only viable way to take our country back, IMHO.
Good post, thanks.

[steve-b]

IMO, if there are to be direct taxes at all, you should drop the check in a box right in front of the voting booth.

[BearCub]

I think all taxpayers should have to write a check to the government once a month (instead of withholding). Watch how quickly the tax revolt happens...

[HusbandMan]

IMO, if there are to be direct taxes at all, you should drop the check in a box right in front of the voting booth.

At the very least, the day of reckoning with the IRS should be moved from April to November.

[IsItTimeYet]

interesting idea. possible?

[narby]

Never happen.

[babyface00]

Is withholding mandatory? Can't you choose to not have funds withheld and then pay the IRS monthly or quarterly if you want?

[SGCOS]

...The government took more money from you then was needed, used the excess to collect interest, and then returned it to you, almost certainly at a value less than when you earned it.

Of course, modifying a W4 form to adjust withholding is beyond the grasp of most taxpayers.

However, sending a tax check every week would wake up those same people, and might even help the Post Office make some profit.

[Middle Man]

Join the Freedom Drive 2002 to D.C. this fall. A show of force in the nation's capital will do more to focus attention on the criminality of IRS activities than a letter to every member of Congress.

Just to highlight the Alice-In-Wonderland madness of the federal government, IRS Commissioner Rossotti recently told the House Ways and Means Committee that he was going to "force everyone into voluntary compliance, even if I have to file 'dummy' returns."

Aside from being an oxymoron (how do you force somebody to volunteer?), there is absolutely no section of the Internal Revenue Code that allows the commissioner -- much less his boss, the Secretary of the Treasury -- to create "dummy" income tax returns if a taxpayer doesn't file one himself. This is totally illegal and we had better start moving to stop such nonsense in this country.

This is nothing less than a coup d'etat of representative government by an unelected bureaucracy.

[Emile]

If you are a wage earner (in other words, receive wages for which you will receive a W-2), withholding is required. However, a taxpayer who prudently plans his finances and cash flow will maximize the number of withholding allowances he claims, based on the number of personal exemptions (or deduction/credit equivalents) he can expect to have on his return. There are rules prohibiting a taxpayer from claiming more allowances than he will be entitled to, and employers are required to report anyone who claims more than 9 allowances to the IRS, as part of their quarterly payroll tax returns.

That all being said, through proper manipulation of withholding allowances, it is possible at least to legally position oneself so as to have a balance due each April 15, rather than letting the government use any of the taxpayer's funds interest-free. Any tax accountant worth his salt can show you how to do it.

[Emile]

However, sending a tax check every week would wake up those same people, and might even help the Post Office make some profit.

LOL. No, the PO wouldn't get so lucky. I'm sure the IRS would institute some electronic/bank depositary method to collect those payments, thus at least saving taxpayers the stamp. Of course, such methods would defeat the real purpose/effect of actually writing/sending a check each week, that being to drive home just how much of our wealth is transferred to the care of politicians federal, state, and local.

[LouD]

It will never happen. Our best hope is to end income tax and replace it with a consumption tax, like a national sales tax.

[PuNcH]

interesting idea. possible?

Ideas like this pop up all the time and they would probably work but its hard to imagine Americans doing anything other than bending over and taking it.

[IsItTimeYet]

yeah. I guess a good plan that hinges on mass participation is simply a bad plan.

[Glenn]

Nice read. But explain just how you'd bring it about? Correct answer:

You can't.

[Flashman_at_the_charge]

BELIEF #10:

That submitting the W-4 is REQUIRED by law. It’s NOT ! The fact IS that there is NO law requiring ANY worker to execute a Form W-4. It’s STRICTLY ELECTIVE. Of course, it APPEARS mandatory, since most employers won’t hire you without one. why not ? Because they’ve NEVER read the ACTUAL LAW, so they BELIEVE it’s required. The W-4 is a PERMISSION SLIP that allows an "EMPLOYER" - another legally defined term - to withhold taxes from an "EMPLOYEE". So is EVERYONE who hires others AUTOMATICALLY an "EMPLOYER"? No, only one who has signed Form SS-4 "Application For Employer Identification Number". As you may have guessed now, THAT’s not required either ! After all, an application is ALWAYS voluntary, isn’t it? Otherwise, there’d be no reason to apply! The proper paperwork to STOP tax withholding in the workplace is explained in 26 Code of Federal Regulations, section 1.1441-5 and in IRS Publication 515, which in speaking to the withholding agent states:

"If an individual gives you a written statement stating that he or she is a CITIZEN or RESIDENT of the United States, and you do not know OTHERWISE, you do NOT have withhold tax".

Imagine THAT ! One who hires other does NOT need to be an unpaid bookkeeper for the federal government! And a worker doesn’t HAVE to give the government an interest-free loan.

[ELS]

bump for later reading

[MissAmericanPie]

Sounds like an idea whose time has come. Maybe it could be challanged as un-Constitutional in some way. I can't imagine a congressman repealing this law unless he is under huge pressure.