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

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.

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

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

  2. 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. 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.

  3. 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 However, after the Civil War ended income tax was repealed in its entirety and along with it tax withholding also abolished.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 DIDN’T KNOW THEY DON’T OWE IT IN THE FIRST PLACE!!

  4. 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 However, withholding laws were again repealed in 1917 because of employer complaints.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.

  5. 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.”

  6. 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 wasn’t 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.

  7. 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 it’s 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.

  8. It has come and gone over the years with the government’s 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.

  9. 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://endtaxes4ever.com/.

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