Withholding taxes in the beginning were paid on April 15 on a yearly basis just like you would have paid any bill. Withholding money from your paycheck has always been the government's goal as a means of paying taxes and it was tried more than once but not until WWII did it stick. The people were told it was best for them if the government took a portion of their paycheck before they got it, best for who you ask? You could no longer put the money in a savings account and draw interest until the bill came due. The government likes the withholding because the people would not be as likely to be upset when they change the rules and the percentage they pay in. Instead of writing a big check on April 15 they could get a refund on the overage they had sent in but this does not pay interest like the bank does. With the manipulation of the tax code we now have people getting a refund when they did not pay any taxes. In 1970 President Carter tried to withhold taxes on dividends and interest but it failed, this was revived in 1982 by Reagan and passed but it was repealed. Unions like the withholding for dues and they have been doing it for years. It has only been recently that members are rebelling against this and some of the leaders are showing signs of listening. The FairTax is paid each time you buy an item or service but it is not collected on used goods. If you purchase a used car or house you would not pay federal taxes. There are books and websites www.FairTax.org
available with information please do not dismiss this idea without checking further, our tax code needs a drastic change not just tweaking. Soon the IRS will be running your Healthcare along with your taxes can you imagine what they could do then? Do away with K Street and Corporate welfare also.LUKE
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