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Jv1856 t1_itajwia wrote

We don’t say that retailers pay 6% of tax on sales. They COLLECT the tax from the purchaser on behalf of the state. It’s the same with an employee’s share of payroll tax. That is money that theoretically would otherwise go to the employee, but the company collects on behalf of the government.

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soldiernerd t1_itakabq wrote

Sure but the difference is sales tax is money coming from the consumer, with no tie to the collecting company.

Payroll tax is money the company hands to the employee, who immediately hands it to the government. It's money which was created by the company and which the government receives as a direct result of the company's economic activity.

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danielv123 t1_itbb5ek wrote

Sales tax is avoidable. You can simply not buy anything and put it all in a bank account, so I agree that its something the consumer pays.

You cannot receive income without paying income tax. For that reason you might as well consider the tax part of the payout. Your income is paid by someone, and they are effectively paying your income tax as well.

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