If you haven’t read him, you should


money falling out of tax bag
 
And now for the obscenity of the week: paying your tax directly to the boss!

Almost on a daily basis, we hear stories about corporate greed at the expense of the little guy. Just when you think it can’t get worse –more is revealed about their gluttony! This week’s obscenity is a scheme they have cooked together that will make you want to throw up.

In 21 states, if you work for a major company, your boss not only takes the tax out of your check but they get to keep it! Yes, that’s right; you are paying your tax directly to your employer. It is not being paid to the state that builds a few schools, feeds some poor people and then gives a little back to the company as a corporate tax credit to encourage job creation. No my friends, it is being withheld from your pay check and deposited straight into the companies own bank account. You look at your pay stub and it says “State Tax” but the state will never see it. Let me repeat that as you pick yourself up off the floor: The Company is literally keeping your taxes and then lying to you on your pay stub.

Let may say that again, in case it didn't sink in: in 21 states, they’ve passed a law that says that taxes withheld from your paycheck, for the state, can be kept by the company.

Now, every employer doesn’t get this windfall — you have to have to get a deal from the government to do it — 2,700 big companies, every big company you’ve ever heard of, General Electric, Procter and Gamble, Deutsche Bank, you name it, they’ve got these deals, where they get to keep the taxes. Billions of dollars are diverted this way. You know the best thing for the companies about this? The workers don’t know, because once the taxes are withheld, the state government treats you as having paid your taxes. They just then give a credit to let the company keep the taxes.

I’ve called journalists. I’ve called union people who negotiate union contracts. And they say, “What are you talking about?” I showed them the work I’ve done. They go, “Oh my God!” They have no idea that this is what’s happening, and the fact that it’s spread from the 16 states when I first wrote about this and it’s now grown to 21 – eventually, all of the 44 states with income taxes are going to allow this, if we don’t put a stop to it.
Pulitzer Prize-winning journalist, David Cay Johnston, author of the book: The Fine Print.

This is one of those stories that need to be shared so that these companies can be dragged kicking and screaming out of the shadows. We should be outraged that our tax dollars are going toward making millionaires more money instead of services for our community. It's obscene!

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