If your employer pays your taxes for you, do you still owe tax?
Yes.
Taxes paid on your behalf constitute taxable income to you.
Thus, if you owe $30,000 of federal income tax and your employer pays the bill, you’ll be treated as having an additional $30,000 of taxable income.
And you’ll have to pay tax on that $30,000.
Thus, you have a tax upon a tax.
Can that possibly be constitutional?
In 1929, the Supreme Court said yes in the case Old Colony Trust Company.
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