On another site, there's been a very passionate debate about the proposed small business tax increase. The issue came up again of the gigantic proportion of people who don't actually pay taxes, in that they pay them out, but get most or all back at the end of the year - the people for whom their payroll deductions are more like a Christmas Club where they're just putting money in there to save it for shopping in spring. If you asked them, most couldn't even tell you a dollar amt of how much of their check went to federal taxes each month. And they also couldn't tell you, once they get that refund, how much they didn't get back (the amount actually paid).
The idea was proposed that this automatic payroll deduction/refund cycle keeps people from actually understanding and appreciating how much of their money actually goes to the government. Instead, your federal taxes should be a monthly bill you have to pay, just like your utilities. It should involve physically making a payment, and being aware of how much that payment is as it leaves your checking acct.
Would that make people more aware? Would it make them less likely to insist people who make more than them should have to pay more, if they actually had to experience the process of writing that check the way a business owner does?
Answer by anime_mom619 at 2:42 PM on Jul. 3, 2011
I agree with anime. Also, you will get a percentage of the taxpayers that will just fail to pay their tax bill, just like they fail to pay their credit card bills. I think if people could just not pay you would have more people opting to fore-go the federal tax payment. They sure would complain when they ended up with fraud charges against them though. And lets not forget when they would normally get a refund.
Answer by QuinnMae at 4:51 PM on Jul. 3, 2011
Answer by Carpy at 7:08 PM on Jul. 3, 2011
Answer by meriana at 9:30 PM on Jul. 3, 2011
Answer by yourspecialkid at 10:44 AM on Jul. 4, 2011
Answer by samurai_chica at 7:27 PM on Jul. 4, 2011
Answer by itsmesteph11 at 1:51 AM on Jul. 5, 2011