Jv1856 t1_itaily6 wrote on October 22, 2022 at 3:37 AM

Reply to comment by soldiernerd in 8K Industry Faces Challenge with New EU Regulatory Ruling by SalmonellaTizz

Payroll tax is not the same as income tax. Crediting corporations for employee-paid portions of payroll tax seems disingenuous to me

soldiernerd t1_itajfig wrote on October 22, 2022 at 3:45 AM

I didn't say it was the same as income tax.

Why is it disingenuous? Where do you think the money is coming from?

Jv1856 t1_itajwia wrote on October 22, 2022 at 3:50 AM

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.

soldiernerd t1_itakabq wrote on October 22, 2022 at 3:54 AM

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.

danielv123 t1_itbb5ek wrote on October 22, 2022 at 9:40 AM

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.