Economic Charts

All economic charts are at the bottom of the page.

Monday, September 20, 2010

UK Proposes all Paychecks go to the State First

Wow, this is a radical move by the UK.  Basically UK employers would send paychecks directly to the UK government, the government would then assess taxes and send the remainder to the employee.  This is a trend that I hope the US government doesn't find neat.  This will tick off every American.  The following is a direct quote from the article.
The UK's tax collection agency is putting forth a proposal that all employers send employee paychecks to the government, after which the government would deduct what it deems as the appropriate tax and pay the employees by bank transfer.
Exactly what does this solve that W2's and your tax per paycheck isn't doing already.  They go on to say that this will provide the government the ability to tax employees in real time.  Well, if your in sales and get a large commission once at the beginning of the year and they establish in "Real Time" that your rate is now much higher and the rest of the year is flat, well then you will have forcibly overpaid.  Sure you should get a refund, but what did real time do for you there?

HMRC estimated the potential savings to employers from the introduction of the concept would be about £500 million ($780 million).
But the cost of implementing the new system would be "phenomenal," Bull pointed out.  
Wow, sounds like they just took the cost of payroll process from employers and put it on taxpayers heads (which means your really taking home less, because you have to fund this a process once done by your employer).  I seriously doubt it will save employers that much as they still have a responsibility to track that money, not to mention HR calls escalating on late payments or issues.  Sounds like the taxpayers there are about to get looted.  But that is austerity in action for you ( O wait, no its not, that will just cause their spending to go up).   Again this is just a proposal, but for the UK taxpayers sake lets hope they don't do it.  [ Read more ... ]

No comments:

Post a Comment