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I would contend that's the opposite of what happens: most people get their taxes automatically withheld so they never saw the money in the first place, and then
by acheron 12y ago
I would contend that's the opposite of what happens: most people get their taxes automatically withheld so they never saw the money in the first place, and then get a small refund after filing. If "we" wanted people to actually see how much money they were paying in taxes, we'd end automatic withholding.
- mrsteveman1 12y agoIt's been my understanding that a significant portion (perhaps approaching > 90%?) of the funding for federal spending during a specific year comes from those "pay as you go" sources, i.e. withholding and quarterly estimated tax payments for those not subject to withholding. If that's the case, wouldn't the end of withholding (and presumably also quarterly estimated payments since they serve the same purpose) leave the federal government with a serious inability to "pay the bills" throughout that tax year?
- harryh 12y agoNo. The gov't would just borrow against the expected revenue windfall in April. The problem is that people wouldn't save enough money to pay their taxes and wouldn't be able to pay. It's the same reason your landlord expects you to pay monthly and won't let you pay yearly.
- lkbm 12y agoYeah, I just now looked up how much I was actually paying in withholding, because I seriously had no idea. I know how much I had to pay when I filed this year, and how much I've gotten in refunds in past years, but I couldn't have told you within a 100% margin of error what actual withholding was without checking.