Community: iWarriorDiscover Your Inner Liberty Warrior

[Weston White]

As to Employees, Federal Withholding Taxes are Unconstitutional

Douglass Bartley
March 20, 2012 at 12:07 pm
[oa]http://douglassbartley.wordpress.com/2012/03/20/as-to-employees-federal-withholding-taxes-are-unconstitutional/[/oa]

Amendment 5: “[P]rivate property [shall not] be taken for public use, without just compensation.”

Federal tax withholding deprives employees of the time value of their money (up to 15 1/2 months’ [1] worth of interest employees could have earned on the withheld funds). Thus the withholding is a taking (i.e., interest lost) of employee property (money) without any compensation.

The same principle applies to all others required to make advance tax deposits, such as estimated tax payments.

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[1] The 15 1/2-month argument assumes April 15 as the filing date. Earlier filers (those who file between January 1 and April 15) would lose lesser amounts.

Also for those who have overpaid in their withholding, there is an additional loss for the lapse between filing and receiving a refund.

[Weston White]

Yet, another great point to be made. For example, say that you have $8,000 withheld annually, at a compounding interest rate of 4% that sum would have realized $320 (annually) in accrued interest throughout the entirety of your 40-years of working. As crudely depicted below (this reflects the financial loss that you will likely experience due to the withholding scheme during the entirety of your career or occupation):

YEAR – ACCUMULATING SUM (+ ACQUIRED INTEREST)
1 – 320
2 – 640 (+ 12.80)
3 – 972.80 (+ 26.11)
4 – 1318.91 (+ 39.96)
5 – 1678.87 (+ 54.35)
6 – 2053.22 (+ 69.33)
7 – 2442.55 (+ 84.90)
8 – 2847.45 (+ 101.09)
9 – 3268.54 (+ 117.94)
10 – 3706.48 (+ 135.46)
11 – 4161.94 (+ 153.68)
12 – 4635.62 (+ 172.62)
13 – 5128.24 (+ 192.33)
14 – 5640.57 (+ 212.82)
15 – 6173.39 (+ 234.14)
16 – 6727.53 (+ 256.30)
17 – 7303.83 (+ 279.35)
18 – 7903.18 (+ 303.33)
19 – 8526.51 (+ 328.26)
20 – 9174.77 (+ 354.19)
21 – 9848.96 (+ 381.16)
22 – 10550.12 (+ 409.20)
23 – 11279.32 (+ 438.37)
24 – 12037.69 (+ 468.71)
25 – 12826.40 (+ 500.26)
26 – 13646.66 (+ 533.07)
27 – 14499.73 (+ 567.19)
28 – 15386.92 (+ 602.68)
29 – 16309.60 (+ 639.58)
30 – 17269.18 (+ 677.97)
31 – 18267.15 (+ 717.89)
32 – 19305.04 (+ 759.40)
33 – 20384.44 (+ 802.58)
34 – 21507.02 (+ 847.48)
35 – 22674.50 (+ 894.18)
36 – 23888.68 (+ 942.75)
37 – 25151.43 (+ 993.26)
38 – 26464.69 (+ 1045.79)
39 – 27830.48 (+ 1100.42)
40 – 29250.90 (+ 1157.24)

TOTAL (APPROXIMATED) LOSS: $30,728.14

* Also as an additional consideration, at least for those that are further burdened by state income taxes (which piggybacks on the federal income tax), the above does not take into consideration the $1,000 or so that the state also withholds from you each year in addition to the federal income tax.