the.com/withholding system
the government gets paid before you even see your own money.
means a tax collection method where employers deduct income tax from wages before handing over your paycheck.
from invented in the us during world war ii to fund the war effort without waiting for annual tax day, and designed by treasury economists including a young milton friedman, who later called it one of his few regrets.
friedman regrethe helped build it, then spent decades opposing it.
psychology hackpeople feel refunds as gifts, not overpayments returned.
pre-1943 USamericans paid taxes in one lump sum, once a year.
global spreadmost developed economies now withhold wages at source.
for instance
paye uk — pay as you earn, launched 1944, britain's version.
us form w-4 — tells employers how much of your check to hold back.
australia payg — pay as you go system funds most federal revenue.
japan nencho seisan — year-end tax adjustment reconciles withheld amounts each december.