posted on Mar, 26 2013 @ 03:54 PM
Now, I've not a clue where to post this. While it is a fairly recent article, the content is not new. Nor is there an economics forum or a business
forum. And so, it's here.
I read this article this morning, found it full of interesting data, from an economist. One that, in his own words, "Went to the Chicago School 40
years ago, but I did not drink the Kool-Aid."
It has goodies for everyone here, including Anti-Obamisms, outrage at the cost of and rotten quality of the internet in the US, conservative
anti-science "idiots". It's got something for every one.
I'm going to quote from the last couple of paragraphs:
JH: I want to talk about one of the practices you describe that I find to be... I don’t know, I’d say shocking, but I’m pretty hard to shock
these days. You wrote about this in a Reuters column -- how in 16 states, big corporations collect state taxes from their employees and pocket
DCJ: It’s now up to 21 states. In 21 states, they’ve passed a law that says that taxes withheld from your paycheck, for the state, can be kept by
the company. Now, every employer doesn’t get this windfall -- you have to have to get a deal from the government to do it -- 2,700 big companies,
every big company you’ve ever heard of, General Electric, Procter and Gamble, Deutsche Bank, you name it, they’ve got these deals, where they get
to keep the taxes. Billions of dollars are diverted this way. You know the best thing for the companies about this?
JH: What’s that?
DCJ: The workers don’t know, because once the taxes are withheld, the state government treats you as having paid your taxes. You paid your taxes.
They just then give a credit to let the company keep the taxes. I’ve called journalists. I’ve called union people who negotiate union contracts.
And they say, “What are you talking about?” I showed them the work I’ve done. They go, “Oh my God!” They have no idea that this is what’s
happening, and the fact that it’s spread from the 16 states when I first wrote about this and it’s now grown to 21 – eventually, all of the 44
states with income taxes are going to allow this, if we don’t put a stop to it.
This appears to be just States doing this not the Feds.
Personally - the taxes I pay, in good faith, to the state to pay for services, I want to go for those services. Individuals still get credit for the
taxes from the agency. The agencies don't get the money, the employees and public at large are lied to and stolen from in the name of private
I hope you'll read the whole thing, it's a doozy, whatever your political/economic predilection.
Some other sources (about your taxes going to corporations):