Indirect Taxation: A Plan to Collect All Wage Income Taxes Indirectly

The vast majority of Americans work hourly wages and paychecks of manual labor to make a living. Justice, logic, function, and practical application that ALL indirect taxes be collected by indirect form and function. Countless trillions would be saved by not placing the onus of collection on regular citizens of America, when all indirect taxes can and must follow the rule by collection AT the source which the law demands. **Employment taxes** are within the power of Congress to collect, and the Constitution requires that all taxes be collected at the source.

Wages, salaries, and earnings by hourly labor are purchased by employers for their business. It is only fit, with respect to the law, that all employment taxes that need to be collected by employers who are purchasing the hours of labor and toil. This would relieve countless hours of human suffering filling out forms, collecting records and receipts, under pains of penalties, purjury, oath and criminal penalties This is ghastly treatment to the vast majority of honest citizen Americans who are just making a living putting in countless hours of toil in an economic environment with high costs and inflation.

When employers deduct employment taxes before paying their employees they rightfully become the source of all of employment taxes that collected, which is then passed onto whatever product or service of commerce. If collected at the source, employment taxes should require no further action other than the business or corporation passing the taxes onward to the federal government. By collecting these taxes indirectly by way of employment taxes would relieve individuals from the burden of filing forms and lists and compliance. This was the case with early tax laws, including Social Security and Medicare taxes (FICA taxes). US tax policy history that withholding taxes at the source was the standard procedure until the 1942 "Victory War Tax Act". Up until then, less than 2% of the population paid these "privilege taxes" or indirect excise taxes.Any tax on labor is a tax on the cost of busnesses, and these taxes are passed on to the consumer.

There is no need to place all the citizens into a compliane of 20,000 pages of rules when even all hours of human effort is a waste of trillions of funds and hours of our lives filing out forms with anxiety.

In forming the 16th Amendment Income Tax most of the wealth was in the top 1% was able to escape paying most taxes which seemed absurd at the time when the government may need money in times of war or otherwise. The income tax was seen as a solution to tax wealth that had been able to escape taxation through legal means. Most Americans at the time were common folk without much wealth and supported the idea that gross wealth ought to bear a burden of government because much expenditure was used to protect it. This is a complaint during the debates into the formation of the income tax amendment to the Constitution in 1909 made by Senator Owen. :

However, in 1944, millions of individuals were introduced to paying income tax on wages. These workers now pay the bulk of federal taxation, even though the original intent was to tax the wealthy. Taxes on wages have increased exponentially since 1944. Read: external link showing in 1944 payroll taxes increase to now, to the bulk of all federal revenues: History of Federal Receipts by Source

The government should require all payroll taxes to be paid by employers upon the payment of wages, as such is the practice and law is now, except to relieve the wage earner from any further liability. As with all other indirect excise taxes, including the gas tax, once it's in the tank the end user has already paid the tax and is done with it.

Our financial institutions, literatures, textbooks, and all other nations describe income taxes as a direct tax. In opposition to this, the US Supreme Court historically and to-date catergorizes the income tax to be an indirect tax to avoid the Constitutional requirement that direct taxes are to be apportioned.

WITHHOLD PAYROLL TAXES INDIRECTLY

By eliminating filing requirements and any further liability of wage earners, once the employer has withheld any taxes, hundreds of millions of Americans would no longer need to figure and file tax forms. This alone would save billions of dollars and countless hours filling out and filing forms. This is a more efficient way to collect income taxes; collecting indirect taxes indirectly.

When the income tax is applied to employers the tax is collected indirectly, any further liability or tax may result in a direct tax on property.

1. Current Tax System Challenges
2. Complex tax code and regulations with over 20,000 pages
3. Average time to complete taxes: 13 hours
4. $140 billion spent annually on tax preparation
5. Eliminate more than 90% of IRS personnel
6. Return to Constitutional requirement of collecting taxes

Restate the tax law policy to tax “wage” income taxes for “collection at the source” by removing wage earners from the attachment of tax liability of all wages that are paid; thus, wage earners would not be required to file a return. Return to a very important constitutional principle to collect indirect taxes “indirectly”, i.e., placed on items of commerce, not on individuals. Allow wage earners in this country to better compete in the new AI global markets by making wage taxes uniform and efficient by collecting these taxes just once, at the time of payment.