Originally posted by funkedup
Witholding is just the process where they take your income directly from your employer before you get it. They can (and do) still collect taxes in the old-fashioned way (send a check in on April 15).
Gee Funked, you'd think an accountant might know that.
I know they can and do collect taxes in the old-fashioned way. The thing is, it is mighty, mighty easier to control and mighty, mighty easier to collect when you withold.
Theoretically YOU are the leader of the government...you NEED that money.
The IRS has a hard enough time assessing and collecting the taxes owed by self-employed people or those who report on financial transactions where taxable income is earned outside of normal employment. Verification of those figures is an arduous process and the accuracy, even at peak efficiency, of those returns are dubious at best. Inevitably you will collect less than you actually are owed...no-one pays MORE than they should.
Witholding removes much of the doubt and places the onus on the employers and not their employees to withold the correct amounts.
It also results in a lot less people serving jail time for failure to make payments, or not paying enough.
Essentially it is a big nanny, but one that you better hold on to unless you want your government to go bankrupt.
It's cool...I'm happy to serve as your Finacial Advisor (having one here might come in handy after you retire after-all). But
we NEED that money. Get rid of number three...I'm with you on everything else.