The Paycheck Withholding Effect
Posted on July 3rd, 2007 by bile Categories and Tags: Uncategorized, 16th Amendment, Michael Moore, Milton Friedman, politics, taxes, war, your money, your rightsOne of Milton Friedman’s few mistakes was his role when he was at the Treasury in implementing federal income tax withholding from paychecks. Withholding was pitched as a convenience. In truth, it manipulates most taxpayers into being happy during tax season (I’m getting a refund!). Never mind the fact that that refund is actually the result of government overcharging you, and stealing your interest in the process.
And of course, it makes it easier for the government to raise taxes when it’s taken out of your gross pay.
I’ve been saying both these for years. People would care a whole lot more about how much they were taxed and where it was going if they had to actively cut Uncle Sam a check every year. And those looking forward to a refund are getting a loan back interest free. I’m not familiar with large businesses but my family has two small businesses and have pay taxes monthly and quarterly. They are quite aware as to the real cost the taxes have.
For an example at the propaganda surrounding the war and taxes take a look at these cartoons from the time. Michael Moore would be proud.
Leave a Reply
You must be logged in to post a comment.
