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Tuesday, May 27, 2008

Corporations Are Tax Collectors

A large corporation receives massive government subsidies. A large corporation is effectively an extension of the government. Even though the evils of corporations are commonly discussed, the biggest evil is hardly ever mentioned. Government's most important job is outsourced to corporations: tax collection.

Automatic payroll deductions started as a "temporary emergency" measure in World War II. Like most "temporary emergency" infringements of people's rights, this gained permanent status.

Corporations automatically deduct taxes from your paycheck. Anytime a corporation pays money for any reason, it is automatically reported to the IRS.

Of course, management at a large corporation is eager to comply with this regulation. The government subsidies they receive are larger than the income taxes they pay. They aren't going to risk their cushy jobs for the sake of tax resistance.

The role of "corporation as tax collector" is perhaps the biggest evil perpetrated by corporations. A large chunk of this tax revenue winds up back in the pockets of corporate management.

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This Blog Has Moved!

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