he prospect of an Internal Revenue Service “ weaponized ” against political opponents, with collection agents packing guns , is raising concern in Congress. On the other hand, a more basic and longstanding problem has managed to escape notice. The time is long past to trim the power of the IRS in particular and the federal government in general. The IRS gets workers’ tax money before the workers who earned it. This takes place through the practice of withholding money from workers’ paychecks, a development dating to World War II.
“Wars have always been the most important occasions for the introduction of new forms of taxation,” writes Robert Higgs ( Crisis and Leviathan ). “One way to capture more revenue is to reduce tax evasion by seizing the people’s earnings before the earners ever lay hands on them. This procedure has come to be known as tax withholding at the […]
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