The Perfect Progressive Tax Plan

Posted: September 20, 2010 in Uncategorized

The British government’s tax agency has proposed a new way for employers to pay their workers.

The UK’s tax collection agency is putting forth a proposal that all employers send employee paychecks to the government, after which the government would deduct what it deems as the appropriate tax and pay the employees by bank transfer.

The proposal by Her Majesty’s Revenue and Customs (HMRC) stresses the need for employers to provide real-time information to the government so that it can monitor all payments and make a better assessment of whether the correct tax is being paid.

Currently employers withhold tax and pay the government, providing information at the end of the year, a system know as Pay as You Earn (PAYE). There is no option for those employees to refuse withholding and individually file a tax return at the end of the year.

If the real-time information plan works, it further proposes that employers hand over employee salaries to the government first.

Now consider:

Obama said, “Because, at some point, I believe you’ve made enough money.”

California paying its tax refunds and bills with IOUs.

California changing withholding percentages last year to provide “a loan” to the state government.

Have you ever experienced what passes for “customer service” at any federal agency?

The IRS’s history of malfeasance:

* The IRS telephone taxpayer assistance program provides about 8.5 million Americans the wrong answers to even the most basic inquiries about the tax laws.
* This year roughly 10 million Americans will receive correction notices from the IRS assessing about $4 billion. About half of those notices will be erroneous.
* About 40 percent of the revenues the IRS collects through penalty assessments are abated when citizens challenge the penalties. In 1993 taxpayers were over- charged $5 billion.
* A General Accounting Office audit of the IRS in 1993 found widespread evidence of financial malfeasance and gross negligence. The IRS could not account for 64 percent of its congressional appropriation.

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