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Article #442Re: Incidence of payroll-deducted taxes
From: George Greene
Date: Wed, 03 Jan 1996 00:00
Date: Wed, 03 Jan 1996 00:00
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I continue to rant: >ALL of the cost of ALL payroll-deducted taxes is paid by the >employEr. ALL of it. NONE of that money EVER goes to ANY employeE, >so since he never had it in the first place, how can he have paid it? In article <DKA1LE.4q2@argo.net> gad@argo.net (George Dainis) Replies: : What a bizarre concept! Under your reasoning, when my employer deposits : my paycheck directly to my bank account, while my bank simultaneously deducts : my mortgage payment, you would rationalize that I didn't pay my mortgage? Absolutely not. Although I must thank you for phrasing that as a question instead of as a condemnation. The situations are obviously distinguishable. Whether you do vs. don't have a mortgage is quite completely under your control. You could sell your house. You could've chosen not to buy it in the first place. But you could not choose not to ratify the 16th amendment, or the withholding laws of the New Deal, and you cannot, short of precisely the sort of campaigning we are engaging in here, hope to do anything about the fact that taxes are withheld from your wages. You DO have control over what your bank direct-deposits/deducts. You do NOT have control over what your employer pays the government for the privilege of employing you. >But American wage-earners DON'T PAY income tax, social security, >or ANY other payroll-deducted tax. Their employers pay them, and they >only have to pay them as a penalty for hiring people. : So when I pay social security on my outside income, or when I have to pay : additional taxes due to under withholding from my primary employer (again, due : to outside income), I'm suddenly transformed from one state of taxation to : another? Not exactly. Outside income can be earned in a variety of ways. This discussion isn't ABOUT outside income. It's about payroll- deducted taxes. Any taxes that you are paying that are not payroll- deducted may have whatever effects you choose -- that is just not relevant to the discussion. We did BEGIN this by arguing with conservatives who thought there would be more effective political pressure to lower income taxes if only they weren't withhold. I was taking the position that anybody who was in favor of job-creation (unfortunately not always correlated with claims to support "the work ethic", conservative inconsistency being what it is) would have even stronger incentive to get rid of withholding. If you really want to alleget that it doesn't make any difference whether your employer pays the gov't now, xor you pay the gov't later, I would invite you to argue with the people who started this, not with me. This really has more to do with both employee's and employer's relative flexibility in changing the terms of the agreement (i.e., the speed with which your employer can change your wages, how much he knows about your taxes, and the speed with which you can find "outside income").
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: 105dfd,51bcef2ffa437c30 X-Google-Attributes: gid105dfd,public X-Google-Thread: 10d662,fe496bb546a1da4c X-Google-Attributes: gid10d662,public X-Google-Thread: 104158,51bcef2ffa437c30 X-Google-Attributes: gid104158,public X-Google-Thread: 104eff,51bcef2ffa437c30 X-Google-Attributes: gid104eff,public X-Google-Thread: fa7f5,51bcef2ffa437c30 X-Google-Attributes: gidfa7f5,public X-Google-Thread: 105ecf,51bcef2ffa437c30 X-Google-Attributes: gid105ecf,public X-Google-Thread: 10dda6,51bcef2ffa437c30 X-Google-Attributes: gid10dda6,public X-Google-Thread: ffe14,51bcef2ffa437c30 X-Google-Attributes: gidffe14,public From: greeneg@excalibur.cs.unc.edu (George Greene) Subject: Re: Incidence of payroll-deducted taxes Date: 1996/01/03 Message-ID: <GREENEG.96Jan3153605@excalibur.cs.unc.edu> X-Deja-AN: 133825007 references: <490s4o$eku@nexus.coast.net> <499sg8$elm@villa.fc.net> organization: The University of North Carolina at Chapel Hill newsgroups: mi.misc,alt.politics.usa.misc,alt.activism,talk.politics.misc,ca.politics,dc.politics,ne.politics,nj.politics,pa.politics,triangle.politics,misc.taxes,ny.politics