Sep 2008 08

Withholding and I2

A bit of pub philosophising here – or rather the outcome of a discussion at the weekend over a few jars – but what would get this country further up in arms over all issues relating to tax?

One gem is to abolish what is called ‘withholding’ – the policy of automatically taking income tax from people’s pay cheques.  Now I know there are positive and negatives to abolishing withholding.  The efficiency argument is there, that if the income tax is taken automatically then there need not be form filling and the payment can be instant and much smoother.

However, one of the reasons the anti-income tax movement has embraced the Fair Tax in the United States, is down to cross-the-board hatred of filling in tax returns.  If you have to sit down and write out a cheque each month to the government, it’s a deliberate task that requires thought.  You write out any cheque and you contemplate where it’ll go, what it’s spent on and used for, whether it’s a cheque for utilities and the like.

Now factor that in with government and having taxpayers write out a cheque every month to the government and you might get a lot more people asking – “where’s my money going?”

Just a thought.

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  • Tim

    How about persuading more shops to tell customers, on their receipts, the amount paid in VAT and Duty, as well?

  • TheNightFly

    We, the people, are responsible for keeping the government in check and their are two important rights we must have in order to do this. The first important right is the right to vote. The problem with voting is that it’s never easy to trust the accuracy of the results or the integrity of the candidates. That’s precisely why it is absolutely critical that we also have the right to withhold our financial support from government if and when our elected leaders fail to do their jobs properly. Without these basic checks by the people, there is no accountability in government.
    That is why I have always been opposed to income taxes because they directly undermine the most basic and essential check on the balance of power between the government and the people. Of course, I don’t support the flat tax. The fact that it’s an income tax makes in inherently unacceptable.
    I don’t support the VAT either because it is a business tax which merely adds to the cost of producing goods and services and hides the tax burden from the real tax payer. Consumers ultimately pay all taxes so, it’s completely unnecessary and deceptive. The VAT is also designed to work in combination with a low rate flat income tax so, we really need to steer clear of both of them because, if Congress passes one, the other is sure to follow.
    I support the Fair tax because it is the only way the government can tax the people without taxing production or income. It doesn’t eliminate federal revenue but it does give the people some control over how much tax they pay and that is the critical check the people have been missing for the last ninety five years.