Stop Withholding Taxes

Increasing Transparency in Government
January 1st, 2007

Stop Withholding Taxes Pledge FAQ

A written constitution would provide a permanent form of government, limited in scope, but effective in providing both liberty and order. Ronald Reagan, March 17, 1978

When did the pledge begin?

Candidates and elected officials began taking the pledge in 2007 but the idea began in 1990.

What are the benefits of the Pledge?

The Stop Withholding Pledge promotes openness and transparency in government which all major political parties claim to support. It improves fiscal stewardship by enabling the taxpayer to see what they are paying in taxes. It improves Washington’s responsiveness to taxpayer concerns and improves the taxpayers understanding of the power now held in Washington.

Will the Pledge impact government revenue?

The Stop Withholding Pledge is completely revenue neutral. The pledge does not require that signers support lowering taxes nor does it take any stance that approves of raising taxes. It merely impacts how taxes are collected. Likewise, instead of giving the Federal government a tax-free loan, you get to use your money until your taxes are due. Ending withholding taxes only delays with collection, not revenue rates.

How long is the Pledge binding?

As the Pledge is a prerequisite for many voters, the Pledge is considered binding for as long as the office-holder holds the office for which he or she was elected.

What would it take to repeal the Withholding law?

A repeal of the Withholding law would only require a majority of both houses of Congress and the signature of the President. Since the Pledge is revenue neutral, politicians of all persuasions should support the Pledge.

Will it make collecting taxes more difficult?

Since there are no changes in filing requirements, the Pledge will not make collecting taxes more difficult. The same reporting and filing requirements are applied with or without withholding.

How many members of Congress have taken the pledge?

Totals will be available at the end of 2007.

Does the pledge limit policy votes on taxes?

The pledge does not stand in the way of any tax decreases, increases or revenue neutral changes to the income tax.

To whom, exactly, am I making this Pledge?

The Taxpayer Protection Pledge is made to voters in a candidate’s state or district–not to StopWithholding.com. StopWithholding.com administers the Pledge and helps to educate the public about it.

Do I have to take the pledge every time I run for office?

No. A candidate only needs to take the pledge once. Candidates are always welcome to take the pledge each election cycle and show their continued support of taxpayers.

Who has supported the Pledge?

The Pledge is supported by taxpayers of all persuasions:
a. Supporters of the FairTax; it does not conflict with their efforts.
b. Anyone with concern about Big Brother.
c. Supporters of liberty and freedom.
d. Supporters of a less corrupt government.
e. Supporters of a less intrusive government.
f. Supporters of a more open government.
g. Anti-war activists. What a better way to show the true cost of a war than to make people conscious of what they are paying to fund it?
h. Supporters of a more responsive government.
i. Citizens concerned about domestic spying

In short, anyone who sees the problems of big brother, big government and wants to make others aware of the size and scope of government.

If you are not a candidate, what can you do to help politicians adopt the Pledge?

1. Ask candidates why they won’t take the Pledge by email, fax, telephone, or in an interview on CSPAN.
2. Encourage other candidates to support the Pledge to differentiate themselves from their rivals who care more about the power residing in Washington than the freedom of the citizens of the United States.

If you are a candidate, how does the Pledge benefit you?

The Pledge benefits your candidacy in many ways, some of which are:
1. It differentiates you from your opponent by showing your respect for the citizens of the United States.
2. It shows you are a non-Washington outsider who values the freedoms of your consituents.
3. It shows you know who pays the bills in Washington and that the money sent to Washington comes through hard work and the consequently people need to see where their money goes.
4. Individual political candidates who wish to differentiate themselves from entrenched incumbents should use the Pledge to do so. Since the Pledge is revenue neutral, the only objection that can legitimately be raised against the Pledge is that it is useful in retaining power in Washington.
5. Likewise the Pledge differentiates between the politicians who truly care about freedom for the citizens of the United States and the politicians who are in Washington to accumulate power.

The party that backs, and eventually enacts, the Stop Withholding Pledge will be the party that controls government for the foreseeable future because it will be the party of the people of the United States, not the party of power in Washington.

January 1st, 2007

National Stop Withholding Pledge

The National Stop Withholding Pledge was started in 2007. Its purpose is to eliminate the Federal Government’s withholding requirement and is completely revenue neutral. It reads:

The National Pledge Stop Withholding Pledge

I ,____________, pledge to the taxpayers of the _____ district of the State of _________ and to the American People that I will:
ONE, support all efforts to eliminate the Federal Withholding requirement; and
TWO, oppose any efforts to impose withholding at other governmental levels.
__________________________
Signed
__________________________
Date
__________________________
Witness
__________________________
Witness

If you are a candidate for national office or are a current national office holder and would like to sign our pledge, you can do so by downloading a copy of the Stop Withholding Pledge here in Adobe PDF.

For further information, please read out Pledge FAQ

January 1st, 2007

Big Brother and Withholding

“Liberty has never come from government. Liberty has always come from the subjects of government. The history of liberty is the history of resistance.” Woodrow Wilson, May 9, 1912

* Vague, discretionary laws are not laws, but whim. Objective laws are the only type of legitimate laws, otherwise you are only subect to the whim of government. “Mr. Dunn suggested that the city deliberately kept the language vague, and that as a result police would have broad discretion in enforcing the rules.”
* Big Brother in Britian – one camera for every 14 people in the UK!

January 1st, 2007

The History of Withholding Tax

“The object and practice of liberty lies in the limitation of governmental power.” General Douglas MacArthur

IRS Code 3401 gives the definitions pertaining to Wage Withholding. The current withholding legislation was enacted June 9, 1943 during World War Two and was sold as the patriotic choice to help the United States win the War as part of a “wartime emergency.” It increased the number of taxpayers (although eliminating withholding will do nothing to change tax liability nor change the number of taxpayers). The war ended with victory in 1945, yet the withholding tax remains. (Prior attempts to institute withholding occurred during the Civil War with a fleeting Federal income tax.)

In 1943, “Senators and representatives spoke candidly in congressional hearings (U.S. Senate Hearings 1943:43) of the revenues that needed ‘to be fried out of the taxpayers.’” (Evolution of federal income tax withholding: The machinery of institutional change. Charlotte Twight).

At the time The Wall Street Journal, called it “the most ambitious bait-and-switch plan in America’s history.”

What would it take to repeal the law? Only a majority of both houses of Congress and the signature of the President.

So, ask your candidate of choice to eliminate the withholding of income taxes and improve honesty and openness in government!



January 1st, 2007

Quotations about the Withholding Tax

Experience should teach us to be most on our guard to protect liberty when the government’s purposes are beneficial … the greatest dangers to liberty lurk in insidious encroachment by men of zeal, well meaning but without understanding. Supreme Court Justice Louis D. Brandeis, 1928.

What follows are quotations from a variety of famous people who both argued for tax visibility and/or disfavored the Withholding tax. What follows are quotations from President Franklin D. Roosevelt to President Dwight Eisenhower to David Brinkley to Milton Friedman.

* President Roosevelt on tax visibility – the Withholding tax is invisible
President Roosevelt argued against a sales tax on two grounds, lack of visibility (e.g. it is difficult to see how much you are really paying) and on the regressive nature of the tax. President Roosevelt was honest enough to believe that the public would pay the true cost of government programs even while being conscious of the true cost. Withholding hides the true cost just as Roosevelt feared the sales tax would. (Admittedly President Roosevelt did hide taxes in such things as alcohol and tobacco). Some also argue that the sales tax is quite visible. It is certainly more visible than a withheld income tax, but less visible than a non-withheld income tax. But the relevant point is that Democrats such as President Roosevelt favored tax visibility to Republicans. (See The Tax History Project, Joseph J. Thorndike, Apr. 21, 2005, “In fact, FDR used visibility to argue against sales taxation, insisting that income taxes were more straightforward.”).

* Presient Eisenhower:
“Eisenhower attacked Washington corruption, the Brannan Plan, and (somewhat surprisingly) the withholding tax—which, he said, fooled the people.” Time Magazine, October 27, 1952.

* David Brinkley, News commentator, Democrat:
“There began a brutal, bare-knuckled assault on the lives and property and privacy of the American people. The withholding tax poured in more money than Beardsley Ruml (former chairman of R.H. Macy and Co. and of the Federal Reserve Bank of New York) could ever have imagined, partly because government soon learned what automobile and real-estate salesmen already knew – if you talk to the customer about monthly payments, never mentioning the total price, it is much easier to sell a car or a house. In tax collections, the term `take-home pay’ entered the language, and soon it was clear the government could take in far more without serious complaint if it deducted the money before the taxpayer ever saw it. If the immense sums being collected had to be handed over in one lump sum, surely there would have been a revolt. The withholding tax allowed government to keep the rates high, [Congress] held on to it, an artesian well spouting cash, computers to count it and disburse it, an automatic, power-driven money machine never seen before and a true wonder of the world. With all this money theirs to spend, congressmen could buy votes and build post offices and roads and bridges and reelect themselves almost interminably. They did. (Nov 10, 1996)

* Mises.org
“The withholding tax makes it possible for the government to silently steal the wealth from its citizens with little or no outrage about the loss. And even in the case where the citizen receives a refund of all the taxes he has paid in, the withholding tax still serves two evil purposes.”

* Internal Revenue Service/IRS
Amazingly “One of the major opponents of the idea was the IRS” according to former employees of the Treasury Department at the time, including Milton Friedman. See Reason Magazine, June 1995.

* Milton Friedman
“I think [withholding is] a great mistake for peacetime, but in 1941-43, all of us were concentrating on the war. I have no apologies for it, but I really wish we hadn’t found it necessary and I wish there were some way of abolishing withholding now.” And “[I]ts existence has had some negative effects in the postwar period.”

January 1st, 2007

Other Important Taxpayer Protection Pledges

The only maxim of a free government ought to be to trust no man living with the power to endanger the public liberty. John Adams, 1772

•Americans for Tax Reform Protection Pledge

•U.S. Term Limits Pledge