Wait a minute... what?
http://www.cnbc.com/id/39265847
The UK's tax collection agency is putting forth a proposal that all employers send employee paychecks to the government, after which the government would deduct what it deems as the appropriate tax and pay the employees by bank transfer.
The proposal by Her Majesty's Revenue and Customs (HMRC) stresses the need for employers to provide real-time information to the government so that it can monitor all payments and make a better assessment of whether the correct tax is being paid.
As disquieting as this is, at least it's over there, right?
Don't be so sure.
Let's face it, an honest appraisal of this administration leads to the conclusion that they would probably FAVOR a plan like this in the US. It does solve the problem of taxation... simply take what you need from each paycheck.
Yes, the probability of the system being error-prone and abused is there... but heck, we all work and earn money so that government can take what they need. Right?
That's what our government thinks, anyway...
Here's the thing. Your boss pays the gov't. It'll sit there for at least two days. It'll be the third day before they send it onto you. Basically, they are borrowing your entire paycheck and pumping up their bank account, free of charge, and it goes on each and every week.
ReplyDeleteI'm amazed they would even suggest this in public.
Two days? Ripley, you are incredibly optimistic. Think this through. EVERY private employer in the entire country sends in the money every week or two weeks. Whichever agency handles this massive influx of money will be up to their ears in it. I wouldn't look for a turnaround any quicker than a week or so.
ReplyDeleteAnd the error rate is bound to be VERY high... unacceptably high. We won't even mention the high potential for theft and fraud because of all that money flowing in...