A Tax Season Proposal: Giving you a choice on tax withholding
Tax Withholding Act repeals mandatory tax withholding
By Congresswoman Virginia Foxx
If you are a North Carolina taxpayer you probably just filed your taxes or will
submit your return to the IRS any day now. What you might not know is that
for most North Carolinians, federal taxes will skyrocket over the next five years
if nothing is done to stop the planned increase.
The 2009 federal budget, which I voted against, includes a $683 billion tax
increase over the next five years. That translates into an average tax hike of
$2,672 for hard-working North Carolina taxpayers. At a time when average
folks are tightening their belts we can ill-afford such a punitive tax increase on
the middle-class.
As part of my fight against higher taxes, I am working to help North Carolina
taxpayers see the real burden that federal taxes place on their personal
budgets. Unfortunately, a major obstacle stands in the way of taxpayers
realizing how much tax they pay. It’s a system called mandatory withholding.
Have you ever wondered why you never really write a check to “pay” taxes to
the federal government? The federal government takes its share out of your
paycheck before you ever lay eyes on the money you earned. This is the
essence of withholding.
The withholding system has been in place since 1943. It was instituted in a
time of war when the federal government was desperate for a constant funding
stream to help pay for the unprecedented war effort of World War II. At the
time it was viewed as a way to ensure the government collected every dollar of
tax that it levied to pay for the fight against fascism.
This was a time of great national sacrifice when some Americans paid a top
income tax rate of 94 percent. High rates of taxation helped to fund an Allied
victory, but according to the Treasury Department it also increased federal tax
receipts by 520 percent in four short years.
Unfortunately for you, a wartime tax collecting system proved a little too
successful and it was not repealed at the end of the war. The government
couldn’t kill a mechanism that disguised the true burden of income taxes and
thus withholding became the status quo.
In the language of government-speak, withholding is “a way to make tax
collection easier.” In real-world terms, it’s a clever way to hide the heavy toll
you pay in taxes and, by extension, the cost of government.
This is the worst part about withholding. It silently drains your paycheck before
it gets to you, distorting the tremendous bite that federal taxes take out of
your earnings.
The thinking goes that if you never get your hands on your money in the first
place, you’ll never miss it. That’s government logic for you. And it’s this kind of
logic that also helps disguise the negative impact that tax hikes have on your
wallet.
If you don’t actually have to feel the pain of writing a check to Uncle Sam each
month you are desensitized to future tax increases. The money just slips out of
your paycheck and into the embrace of the federal government.
I believe that you are a better steward of your money than the faceless
government bureaucracy. That’s why I’ve introduced legislation that does
away with mandatory tax withholding. With my bill you have a choice to
continue using withholding or to pay once during tax season.
You’d be free to keep the money you earn and then pay the tax you owe on
your actual income at the end of the year. Some people might be tempted to
complain about losing a “tax refund.”
With my bill you don’t lose a tax refund, you gain control over your finances.
After all, a tax refund is simply the federal government admitting it’s confiscated
too much of your hard-earned cash. Why not keep it in your bank account and
earn the interest yourself?
My bill is called the Federal Tax Withholding Act of 2008 (H.R. 5175). Please let
me know what you think of this legislation. I’d be honored to hear your
thoughts on this bill or your ideas for other ways to keep the federal
government out of your pocketbook and from meddling in your life.
In fact, on Tax Day, April 15th, I’ll be hosting a telephone town-hall from 7pm to
8pm on the topic of taxes and spending. Any constituent can call in and
participate by dialing 877-850-4133 and entering the pass-code FOXX (3699). I
hope you’ll be able to take part.
Editor’s Note: Virginia Foxx is a United States Representative from North Carolina’s Fifth
Congressional District. You may contact her office toll free at 1-866-677-8968 or e-mail
her from her website, www.foxx.house.gov.
Forsyth County GOP
| Early Voting for the Primary Elections will open on Thursday, April 17th. For locations and times, click here. Remember to vote for the Republican Judges! The judges will be at the end of the ballot and will not be noted by party affiliation. Refer to the list of Republican Judges endorsed by NCGOP before you vote! |
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In 1854, anti-slavery activist organized themselves into a new political party, the Republican Party. Within just a few years, Republicans would control both Houses of Congress, a majority of U.S. state governorships and legislatures, and the White House. The history of our party is as remarkable as it is untold. And it is under-appreciated for that reason. April 2, 1855 Republican John Langston becomes nation's first African-American elected official, in Brownhelm, OH; later served as U.S. Rep. (R-VA) and as diplomat in Republican Administrations. April 6, 1869 Republican Ebenezer Bassett is first African- American presidential appointment, as President Ulysses Grant's minister to Haiti. April 8, 1865 13th Amendment banning slavery passed by U.S. Senate with 100% Republican support, 63% Democratic opposition. April 13, 1933 Birth of Native American U.S. Senator Ben Nighthorse Campbell (R-CO). April 14, 1896 George Myers, nationally prominent African- American Republican, rallies southern blacks to support William McKinley, helping him win 1896 presidential nomination. April 22, 1981 President Ronald Reagan establishes first annual Days of Rememberance of Victims of the Holocaust. April 25, 1975 Appointed by President Gerald Ford, Dick Yin Wong becomes first Asian-American to serve as judge on a U.S. District Court. |
Read the latest edition of the Forsyth Precinct newsletter. 5th District Convention - April 19th at the Wilkes County Courthouse 12th District Convention - April 26th in High Point. North Carolina GOP State Convention - June 6th - 8th in Greensboro. Republican National Convention - September 1st - 4th in Minneapolis-Saint Paul. |
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