4 ms·
It's been my understanding that a significant portion (perhaps approaching > 90%?) of the funding for federal spending during a specific year comes from those "
by mrsteveman1 12y ago
It'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.