Getting a Grip on The U.S. Tax Withholding System - PowerPoint PPT Presentation

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Getting a Grip on The U.S. Tax Withholding System

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Income taxes have not always been withheld from the paychecks of the American people. In fact, income tax withholding is a relatively recent development. Before 1943, taxes were only withheld in special instances, specifically those when the government needed to raise “extra revenue.” In this article I’ll discuss this subject and dig a little deeper into how the “tax withholding system” works. – PowerPoint PPT presentation

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Title: Getting a Grip on The U.S. Tax Withholding System


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Getting a Grip on The U.S. Tax Withholding System
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  • Income taxes have not always been withheld from
    the paychecks of the American people. In fact,
    income tax withholding is a relatively recent
    development. Before 1943, taxes were only
    withheld in special instances, specifically those
    when the government needed to raise extra
    revenue. In this article Ill discuss this
    subject and dig a little deeper into how the tax
    withholding system works.
  • The Development of the Tax Withholding System
  • Tax withholding was originally implemented in
    1862 under President Lincoln and it was designed
    to help to raise money for the war effort of the
    northern Union states.

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  • The federal government also implemented a surplus
    of excise taxes for the same purpose, of which
    federal income taxes is but one. However, after
    the Civil War ended income tax was repealed in
    its entirety and along with it tax withholding
    also abolished.
  • After the ratification of the 16th Amendment in
    1913, the income tax became permanent. Many U.S.
    Supreme Court cases followed the passing of the
    Amendment and they too were not clear. This was
    being done on purpose. Why? Because the Supreme
    Court was given the task to muddy the waters and
    keep the matter cloudy, so as to keep the
    masses voluntarily paying in, even IF THEY DIDNT
    KNOW THEY DONT OWE IT IN THE FIRST PLACE!!

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  • The 16th Amendment was falsely promulgated to the
    People of America under the guise of helping to
    pay for World War I. This may have been partially
    true, but there were darker reasons why the tax
    was started. The tax was being used to set a
    precedence for future generations and once again,
    tax withholding was implemented at this time.
  • However, withholding laws were again repealed in
    1917 because of employer complaints. Collecting
    income taxes from employees imposed a large
    burden on employers by placing them in the role
    of tax collector in addition to the role of
    businessman.

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  • This time, it would be only 18 years before tax
    withholding resurfaced. This time the federal
    government acting for its benefactors the banking
    cartels used a back door to require employers to
    start collecting taxes from their employees.
  • After the Social Security Act passed in 1935,
    Social Security taxes started being withheld by
    employers. This change paved the way for income
    taxes to be withheld again starting in 1943 with
    Congress approval of the Current Tax Payment
    Act. Once again, war expenses were used as
    justification for tax withholding. As the early
    20th-century writer and intellectual Randolph
    Bourne once noted, War is the health of the
    state.

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  • Not only were taxes to be withheld again, but a
    massive tax hike was enacted. Income tax went
    from being a tax that was only paid by a few
    high-earning Americans to one that was paid by
    both the rich and the common man. The government
    wasnt sure it could successfully collect the
    higher taxes from its citizens without
    withholding at the source, so they started
    strong-arming employers once again.
  • Have you been duped into paying a tax you do not
    owe?
  • Only federal workers owe federal income taxes. It
    is right in the name of the tax if one simply
    takes time to see it federal income tax.

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  • But few have understood that the word federal
    was describing the ONLY people it applies to.
    This fact can be seen all throughout the tax
    code, especially in sections dealing with
    enforcement powers.
  • Conclusion
  • Most of us take the tax withholding system for
    granted, but its not really a given. Most people
    have no idea why they pay, they only do and never
    question it, mostly due to programming, fear and
    ignorance.

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  • It has come and gone over the years with the
    governments desire to finance expensive projects
    and wars, and in response to the reactions of
    taxpayers to the system. Understanding how the
    federal tax system works will help you make
    informed decisions about both your political
    views and your personal finances.
  • To learn more about your rights under the federal
    tax system you can visit our site
    www.endtaxes4ever.com where you can quickly learn
    to make informed decision about your tax
    liability, if any.

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  • End Taxes 4 Ever offer services to our clients to
    ensure they are only paying the amount of taxes
    owed and getting the biggest tax refund that the
    law allows and remaining in full compliance with
    both State and Federal income tax laws. Our tax
    experts have discovered that nearly all Americans
    are not just overpaying on income taxes, but in
    the vast majority of cases they lawfully required
    to very little if anything at all. We give tax
    planning strategies for high income earners,
    guide individuals in how to legally stop paying
    taxes, remain in full compliance with the income
    tax law and get the biggest tax refund that the
    law allows. Get answers to your questions like
    how many years back can i get a tax refund? and
    more by visiting our website - https//endtaxes4ev
    er.com/.
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