Diary

HMRC Wants All Workers' Pay Checks Sent to Them

Ari Armstrong passes along this perfect example of the liberal mentality. Her Majesty’s Revenue and Customs is suggesting that all employee paychecks be sent to the UK tax collection agency. The agency will then send whatever is left after taking their cut to the employees.

This proposal makes the assumption that money earned by UK workers belongs to the state first. It’s only after they have confiscated what they feel you owe that they will give you your money. Think of the fun UK taxpayers will have the first time there’s an error and they get no money back from the previous week’s check.

It should be noted that the American Income Tax works on the same principle. Unless an employee chooses to claim no withholdings, the government takes their share before the person who earned that money gets it. Even if the employee chooses not to have income taxes withheld, he still has Social Security and Medicaid taxes taken from his check.

You know that refund that everyone looks forward to after they file their taxes? In most cases, that’s not a gift from our benevolent overlords. It’s repayment of the interest free loan that you’ve give the government because they took too much of your money out of every pay check. It’s like me telling you that you own me $15 but I’m going to take $20. Eventually, I’ll give you the $5 back but, until then, you’re still out that five bucks.

A better system would be the Fair Tax. Everyone pays taxes based on how much they spend, not how much they earn. You can even exempt groceries and fuel from the Fair Tax if you want to reduce the burden on the exceptionally poor. In the end, it means that the money you earn is yours and yours alone not what the government allows you to keep.

(Originally posted at PerlStalker’s Ramblings.)