More from the wacky world of Rep. Hostettler. On Friday, he introduced a bill (co-sponsored by Reps. Burton and Pence, among others) to repeal the provisions by which employers deduct income and social security taxes owed by the employees on their wages.
Specifically, he calls for the repeal of sections 3102 (deduction of social security tax from wages), 3202 (concerning railroad retirement taxes), and Chapter 24 (collection of income tax at source on wages) from the Internal Revenue Code. He also calls to amend section 6654(f) by adding the social security tax (and railroad pension tax) as taxes that must be paid quarterly by the individual. The bill would also have the effect of requiring income tax on wages to be paid quarterly.
This is a spectacularly bad idea. This shifts the burden of administration from business to the individual wage earner. It increases the likelihood that individuals will have to pay more in taxes because of penalties. And, it encourages the wage earner to get into financial trouble by failing to set aside the required tax.
Idiot.
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