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by Guvante 1021 days ago
That isn't what paycheck withholding is at all.

Paycheck withholding guarantees you pay your taxes.

Can't forget to file if you already paid all your taxes ahead of time.

2 comments

Also, it shifts the responsibility for the mechanics of income tax payment from individuals to businesses.

Which... I can see an argument for. Especially when coupled with regular payments vs end-of-year.

It's silly for everyone to individually have to think about "How do I get these dollars to the IRS?" all during the year.

Paycheck withholding is good.

It just isn't designed to makes things easier. That is a happenstance (if you don't do withholding you submit quarterly estimate payments which while annoying isn't much harder than tax season)

It is designed to minimize the IRSs job by focusing on businesses rather than individuals for the bulk of taxes.

The US system is pay as you go, so it is just paying taxes on time, not ahead of time. Tax day is just the date when all your accounts are supposed to be settled up for the year.
Ahead of time in this context is before filing your taxes. Certainly waiting until the EOY isn't allowed but since estimated taxes are due quarterly for individuals who don't get a W2 it isn't that different.

My point wasn't "you paid early" but "by the time you fill out you already paid"