with a program of estimated tax payments every quarter, similar to what happens with the self-employed?
Why or why not?
2007-02-07 06:13:53 · 6 answers · asked by American citizen and taxpayer 7 in Politics & Government ➔ Law & Ethics
Most people could not put enough aside to make the quarterly payment, so I think that's a bad idea. It would seriously defund our treasury... not that it needs any help going further into the red lately!
I do agree with the other poster about a no-deduction tax system, but not a "flat tax" where there is only one tax rate. History has taught us that progressive taxation is democracy's best defense, especially given the increasing gap between the working poor and wealthy.
Also keep in mind that the quarterly payments for self-employed people are meant to stimulate additional economic activity, since the system in place basically encourages businesses to spend all their money, then pay taxes upon the remainder. If that money disappeared bi-weekly, then it would be detrimental to small businesses. The average worker won't further stimulate the economy via this method. It is far more effective to use labor protections and control wage shrinkage than attempt to switch to a quarterly collection.
2007-02-07 06:27:31 · answer #1 · answered by Brandon F 3 · 1⤊ 0⤋
Initially the taxes were not withheld from paychecks. This allowed for people to set up accounts - and gain interest - on money set aside for their quarterly (or yearly?) tax bill. BUT the government realized that if they took the money off the top then THEY could capitalize from the interest of investment.
so yes. I think having to pay income tax is unconstitutional anyways. But letting me keep my money and then paying a bill would be much better than the government taking it and making a profit, leaving me to hope and pray that they might give me some back in the following year.
2007-02-07 06:21:47 · answer #2 · answered by smellyfoot ™ 7 · 2⤊ 0⤋
Most people won't be able to meet their obligations if they have to fork over tax dollars every three months. Many will forget, some will spend all their money, and some just won't bother filing that often.
It will create a lot of extra paperwork for the individual as well as more red-tape and beauracrats in the IRS... something we definitely don't need!
2007-02-07 06:49:34 · answer #3 · answered by Goose&Tonic 6 · 1⤊ 0⤋
Well...I might agree with badjanssen, but that's not really part of the question.
To answer you directly: NOOOO!!!!!!!
Please, really, it's sooo much easier to allow my employer to just take a bit out with every check. Everyone I know who's self employed HATES processing their quarterlies, and ALWAYS is short of the money to send in their payment. It ain't broken (this part of it, at least), so don't fix it!
2007-02-07 06:24:09 · answer #4 · answered by abfabmom1 7 · 1⤊ 0⤋
Uh. They have a program of estimated tax payments already in place.
It's optional.
2007-02-07 08:22:29 · answer #5 · answered by Barrett G 6 · 0⤊ 1⤋
no...flat tax...one tax..one payment...no loopholes...for anyone or anything....then we might all become truly equal and have the opportunity to succeed in life as the next guy....
2007-02-07 06:17:21 · answer #6 · answered by badjanssen 5 · 5⤊ 0⤋