Guest Post: Boiling Frog Alert: Congress Wants Automatic Wage Deductions To Pay Down The Debt

Tyler Durden's picture

From Simon Black of Sovereign Man

Boiling Frog Alert: Congress Wants Automatic Wage Deductions To Pay Down The Debt

Folks… you just can’t make this stuff up.

On July 6th, just two days ago, at least a dozen busybody Congressmen sponsored the introduction of HR 2411, the “Reduce America’s Debt Now Act of 2011.”
They always come up with fantastic names for these pieces of
legislation… and rest assured, the better/more patriotic the name, the
more ominous the bill. This one follows the pattern.

HR 2411 states that every worker in America should be able to
voluntarily have a portion of his/her wages automatically withheld and
sent directly to the Treasury Department for the purposes of paying down
the federal debt.

Every employer making payment of wages shall deduct and
withhold upon such wages any amounts so elected, and shall pay such
amounts over to the Secretary of the Treasury…

That’s right. Uncle Sam is so broke that he wants to give all the
good little Americans out there the opportunity to contribute an even
greater portion of their paychecks to finance government largess.

Desperate? Hmmm…. Don’t worry, it gets better.

Obviously, if an employee feels so compelled and should elect to have
a portion of his/her paycheck withheld, the onus of responsibility is
now on the employer to make it happen. The employer has to do all the
paperwork, withhold the money, send the payment to the Treasury,
maintain the account records, and probably submit to all kinds of new
filing requirements.

You can imagine that, if passed, the bill will result in a host of
new IRS regulations, complete with a battery of penalties for employers
who don’t fill out the paperwork properly, submit filings on time, or
make some administrative mistake.

Think about it: if a small business owner has one single employee who
is dumb enough to think that it’s his patriotic duty to pay down the
debt and decides to contribute $1/month, that owner will have the
responsibility for all kinds of new forms and filings, plus submit to
new ‘debt reduction audits.’

But don’t worry, it gets even better.

So let’s say there are millions of sheep out there who elect to
donate a portion of their toil and sweat so that the Chinese and big
financial institutions don’t have to worry about an American default.
How does Congress plan on rewarding its most patriotic citizens? By
sticking it to them on their taxes, of course.

HR 2411 stipulates that any contribution made to the Treasury in order to pay down the federal debt IS NOT TAX DEDUCTIBLE.

“The [Treasury] Secretary shall include. . . a reasonably conspicuous
statement that any amounts deducted and withheld from wages. . .  are
not deductible as charitable contributions for Federal income tax
purposes.”

Imagine this scenario: You make $100,000/year. In a fit of complete
insanity, you decide that you want to withhold your entire annual salary
to pay down the debt. Hey, you can always move in with mom for the next
year, right?

Well guess what– Uncle Sam will gladly take your money… and then
STILL expect you to pay taxes on the $100,000 that you earned, so you’d
have to come out of pocket with an additional $40,000 or so.

Don’t worry, though. The Social Security and Medicare wages are
reduced by the amount that you withhold, making you only liable for
state and federal taxes. Seems like a good deal, eh comrades?

There are so many things utterly wrong with his piece of legislation,
it’s hard to know where to begin other than by saying that such
intellectual and philosophical perversion is only capable of springing
from unprincipled sociopaths whose sole capability is the destruction of
value.

There’s a great quote from Atlas Shrugged that comes to mind which sums this all up:

[W]hen you see that in order to produce, you need to obtain
permission from men who produce nothing; when you see that money is
flowing to those who deal not in goods, but in favors; when you see that
men get rich more easily by graft than by work, and your laws no longer
protect you against them, but protect them against you. . . you may
know that your society is doomed.

We’ve discussed the story of the boiling frog so many times before– a
frog, when put into a pot of water and slowly brought to a boil,
doesn’t realize that he’s in danger until its too late. I think the
boiling frog just got a little hotter. Have you hit your breaking point yet?

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gorillaonyourback's picture

agree, silly fuck still doesn't get that there is no difference btween dems and repubs

Pez's picture

By liberalism you mean free market capitalism of course.

Tunga's picture

"... our tax go to the Treasury..." 

ERRRT!!! No iinthesky that is not how it works. IRS is a private collection agency of the IMF. Your payments go to an IMF account that is used to pay against the interest generated by the national debt. 

Any thing you pay to the US Treasury is totally outside the purview of the tax code enforcers.Timmah would be free to spend your foolish fundage on Cuban cigars if he wants.

Also the Internal Revenue is only generated by federal employees. Hence the definition of the term "income" which means profit derived through the exercise of the privilege of working for the federal US Government. All others "volunteer" when they swear under penalty of purjury that they are US citizens on a W-4 form. 

Reclaim your status as a freeborn American by reclaiming your national status. 

arizona11912's picture

I've read a little about claiming your strawman. How does the process actually work?

Tunga's picture

claiming your strawman. - arizona11912

The idea that you can claim on a tax form that you are not a taxpayer is bunk. It doesn't work. Not a US citizen or a federal employee? Stop using their forms. A withholding exemption certificate per US code 26 3402 that satisfies the requirements of section (n) is used in place of a W-4. See findlaw or cornelllaw.edu for the code.

 it should look like this;§ 3402. Income tax collected at source


n) Employees incurring no income tax liability  
Notwithstanding any other provision of this section, an employer shall not be required to deduct and withhold any tax under this chapter upon a payment of wages to an employee if there is in effect with respect to such payment a withholding exemption certificate (in such form and containing such other information as the Secretary may prescribe) furnished to the employer by the employee certifying that the employee— (1) incurred no liability for income tax imposed under subtitle A for his preceding taxable year, and (2) anticipates that he will incur no liability for income tax imposed under subtitle A for his current taxable year.

arizona11912's picture

Thank you Tunga! I'll do some research.

DosZap's picture

That may work for a while.If your born here, your a subject of the American system, and obligated to pay taxes.

Many have tried this, and some have eluded the payoff,but most get nailed.

VOLUNTARY in the IRS guidelines, does not mean you can choose to pay or not to pay.

It means the Filing of same is voluntary,you get to do the paperwork,but is certainly doesn't mean you get to decide if you want to pay or not.

Lots of folks in prison for Voluntary non compliance.

fallout11's picture

True that, DosZap. Ask Wesley Snipes how this approach worked out for him.

SheepDog-One's picture

Oh dont worry! We're about to be saved by QE3! AHHHH HA HA HA HAAAAA HA HA HAAAAAAA!!!!

Founders Keeper's picture

Hi SheepDog-One.

You've been around here for awhile. How do you see things going down?

 

knukles's picture

The cuter, nicer the name of the legislation, the more ominous... or something along those lines as written above... 

             ........try Patriot Act.

Dan The Man's picture

helloooo!!!  black market !!!

Mad Marv's picture

The only answer at this point is to withdraw from the system.  Get your income down so that you don't pay taxes, don't keep money in banks or 401ks (But I'll use their lockboxes), and buy nothing except Food and utilities. 

I wonder if I can convince my employer to pay me as a contract worker?  I'd just as soon not be W2 employed. 

Fuck these plutocrats.  I'm tired of supporting people sitting on their brains while I'm out busting my ass.

DosZap's picture

 (But I'll use their lockboxes)

Not a smart move.................

thunderchief's picture

The USA will never be productive and competative if these nutjobs push this slave wagon through. What kind of professional would want to work in the USA and pay taxes up the spinkdo and and not get dink in return?

thunderchief's picture

It will create an Army of Professional Ex-Pats.

DosZap's picture

If there were any REAL intelligent smaller/med sized nations out there, they would put out a blanket invitation, to apply for citizenship(for free) to those w/ample means,and passing back ground checks.

This  would be great building blocks added to their national growth, add millions to their systems, and bring their populations up to speed with REAL workers, and quality people.

Hell, we are already exporting most everything of value now, why not another mini Exodus.

detroitbluessax's picture

People can already do this.

Citizens who wish to make a general donation to the U.S. government may send contributions to a specific account called "Gifts to the United States." This account was established in 1843 to accept gifts, such as bequests, from individuals wishing to express their patriotism to the United States. Money deposited into this account is for general use by the federal government and can be available for budget needs. These contributions are considered an unconditional gift to the government. Financial gifts can be made by check or money order payable to the United States Treasury and mailed to the address below.

Gifts to the United States
U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 622D
Hyattsville, MD 20782

 

sabra1's picture

it should be mandatory! no?

Dr. Richard Head's picture

It's all in the words.  I think the definition of "voluntary", for the purposes ofthis bill, is stuck down on page 843,612,;Section A, subsection 3, paragraph (c), article 413,998; "whereas voluntary, as it pertains to all subsections of this bill, is determined to be considered a representation of mandatory required withholding. Failure to do so will result in enhanced water interrogation or contingent military exercise conscription.  Mommy government loves you"

coppertop's picture

A little high toned for most tastes but keds was a great shoe nonetheless.

youngman's picture

It should be mandatory for DEMOCRATS

RockyRacoon's picture

Did you count the names of Republicans on that bill's sponsors?

Greenlight's picture

Looks like 100% Republicans. 

LetThemEatRand's picture

It should be mandatory for anyone who intends to vote again for any Democrat or Republican.  Last time I checked, the water was already boiling.  Big O is just following a long line of c[r]ooks who apparently like their frog legs well done.

DosZap's picture

Voluntary is the first step to mandatory.

AlaricBalth's picture

The US government is so broke it is now seeking donations.  What's next, a telethon?

WestVillageIdiot's picture

They could have Pelosi and Clinton do a strip act.  I'm sure that people would pay a lot of money to see them, "put it back on". 

AlaricBalth's picture

Great idea! What other acts would the ZH community like to see?

Dr. Richard Head's picture

Pelosi's coin slot would be appropriate for the new pennies in circulation. 

I Am The Unknown Comic's picture

Sooooo....THAT's why people say pennies taste like that!

andybev01's picture

Eww...that is gross on so many levels.

Sancho Ponzi's picture

We could balance the budget if Palin stripped. That's my kind of hopey changey feeley.

Hacked Economy's picture

+1  +1  +1

ROTFL!!

I almost spit up my soda on my keyboard!  One of the best come-back lines I've read on ZH in a long time!

(...but now I have that nasty image in my head of Pelosi's wrinkly coin slot...blech...so much for my lunch...)

Dr. Richard Head's picture

Yeah, I am still giggling over that one.  Apparently we have a Pelosi fan lurking as I was junked. 

Hook Line and Sphincter's picture

Pelosi is kind of hot in a GILF way. Come on, anyone else out there willing to take it to task?

Imagine... come on... imagine it... ohhhh yesss.... uhmmmmm!!!

BoeingSpaceliner797's picture

I junked you.  Calling your disgusting fantasy above (sarcastic or not) "junk" is giving junk a bad name.

WestVillageIdiot's picture

I would put up 30 silver pieces (eagles) for each member of the scum class that commits hari-kari on live TV. 

FEDbuster's picture

PPV event hosted by Anthony Weiner and Charlie Rangle?  With special guest host, Jimmy Carter?  WTF???

Buffett was on CNBS the other morning and said that the feds collect an extra $700K to 3 mil from voluntary contributions to lower the debt.  Some ass wipes in congress must have seen it and said "if we only made it easier, more idiots would give us their money".  I like to think my tax payment went to build the "shrimp treadmill".  I can only fantasize where a voluntary contribution would go (maybe to help fill AF1's gas tank for a family trip to Martha's Vineyard or better yet pay for the dog's plane).

WestVillageIdiot's picture

Why won't Warren just die already?  He has already outlived his reputation.  Now he is just a panty sniffing old fool with more money than decency or sense and a traitor to his nation.

FEDbuster's picture

Becky Quick gives him a viagra induced blow job for each "American Sunrise" interview.

Confused's picture

That is one way to reduce the population without lifting a finger.

 

 

This is a joke right? They couldn't be seriously thinking that this is a good idea.

the not so mighty maximiza's picture

o yuck, nancy pelosi jumping up and down in bikini trying to get all phone lines busy.

sabra1's picture

would you rather janet napolitano?

coppertop's picture

I'll take Janet Reno any day!

TheTmfreak's picture

Just stop! All of you stop! I can't stand another image of such things in my mind.