I was thinking about what
“I think the IRS started withholding because people would not be able to pay their taxes if they just got a bill at the end of the year.”
“It’s something about our “gotta-have-it-now” American consumer mentality. If we don’t have our taxes systematically deducted from our paychecks, we’d blow all of that money on frivolous things during the year (NOT living Foolishly!) Also, we like the idea of getting a big check back at the end of the year because it’s like Christmas in April. I know it’s wrong, but that’s just the way we’re programed in this society.”
I agree with both of them, of course.
But what if there were a middle ground?
What if we set up the equivalent of a mandatory 401(k) or IRA for taxes? Every paycheck, the amount they usually withhold for taxes would be put into a tax-deferred account that we couldn’t withdraw from, but we could earn interest on, or perhaps even invest in stocks, bonds, etc? The stocks and bonds would probably be a bad idea since the time horizon is so short (1 year at most). But at least money market or CD interest could be garnered.
At tax time, the money gets transferred to the IRS, and then it works like normal. If you’ve got too much, you get some back. Too little, write a check.
Bingo. No shopping sprees that leave you hanging around tax time, but no zero-interest loans to the gov’t.
I’m giving Kerry a call right now.
The government has a vested interest in making sure you don’t see the money you’re paying in taxes. From the government perspective, out of sight is out of mind, and that suits the beast just fine.
No doubt.
Down with the beast!
Don’t get me wrong. I am actually happy to pay taxes. I like roads, parks, garbage collection, firemen, etc. (except for the fireman who made fun of my first attempt to install a carseat. Him, I don’t like.)
But let me keep my money until it’s due.
They also withhold taxes because the federal and state government needs the money. Weekly payroll taxes are liquidity for the governemnt. I think if they just got the taxes once a year, the government might run out of money much more often.
Considering they’ve already run out of money before they’ve even started (i.e. budget deficit), I have very little sympathy.
Screw ’em. Let ’em use credit cards like everyone else.
That’s what we need for some good old fashioned privacy laws, a few months of the fereal government getting calls from collection agencies during dinner!
That’s a great idea!
you know we need a consumption tax and privacy laws no income tax and let me do whoever and whereever i might add….. not that its stopping me anyway but…..good night