Tax Withholding Is Miracle-Grow for Government

Every time I talk to somehow who is happy about a refund, I ask them whether they will give me an interest-free loan instead.

by Daniel J. Mitchell
January 5, 2018

The internal revenue code is a reprehensible mess that torments taxpayers and undermines American competitiveness.

The good news is that Americans don’t like the tax system.

The bad news is that they don’t dislike it nearly as much as they should. At least in my humble opinion.

Tax Reform for the New Century (First in a Series)

There are two reasons for the inadequate level of disdain.

• First, nearly half of all households are no longer are subject to the income tax. Indeed, the system is actually a revenue generator for some households since the EITC wage subsidy is a redistribution program laundered through the tax code.

• Second, many people get a warm and fuzzy feeling when they file their taxes because of the expectation that they will get a sizable refund, even though that payment from the IRS is simply a reflection of having paid too much tax during the prior year.

For those of us who want to scrap the tax system, this is a challenge.

And I’m not shy about admitting the problem.

"About three-quarters ty…