The History of Withholding Tax

“The object and practice of liberty lies in the limitation of governmental power.” General Douglas MacArthur

IRS Code 3401 gives the definitions pertaining to Wage Withholding. The current withholding legislation was enacted June 9, 1943 during World War Two and was sold as the patriotic choice to help the United States win the War as part of a “wartime emergency.” It increased the number of taxpayers (although eliminating withholding will do nothing to change tax liability nor change the number of taxpayers). The war ended with victory in 1945, yet the withholding tax remains. (Prior attempts to institute withholding occurred during the Civil War with a fleeting Federal income tax.)

In 1943, “Senators and representatives spoke candidly in congressional hearings (U.S. Senate Hearings 1943:43) of the revenues that needed ‘to be fried out of the taxpayers.'” (Evolution of federal income tax withholding: The machinery of institutional change. Charlotte Twight).

At the time The Wall Street Journal, called it “the most ambitious bait-and-switch plan in America’s history.”

What would it take to repeal the law? Only a majority of both houses of Congress and the signature of the President.

So, ask your candidate of choice to eliminate the withholding of income taxes and improve honesty and openness in government!

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>