Jeff Jacoby’s proposal to have Americans pay their taxes directly from their checking accounts, as they do their electricity bills, has been met with skepticism. Many critics argue that it would be inefficient and could cause undue hardship for many Americans.
Firstly, the proposal would significantly increase the workload for the government. Currently, the IRS processes over 160 million tax returns per month. If taxes were to be paid directly from checking accounts, the government would need to process millions of additional checks each month, placing a strain on its resources.
Moreover, many Americans live paycheck to paycheck and may struggle to make such payments. Forcing them to pay their taxes directly from their checking accounts could lead to financial hardship, overdraft fees, and even eviction.
AARP volunteer tax preparer, Robert Marchetti Shirley, also points out that many people are content with receiving tax refunds, including financially sophisticated individuals. He suggests that people can adjust their withholding allowances using the IRS Form W-4 or consult with a tax professional to better match their withholdings to their tax liability.
John L. Koenig adds that the IRS website provides a paycheck checkup tool, allowing individuals to ensure that their withholdings are appropriate and avoid unexpected refunds or tax bills.
In conclusion, while Jacoby’s proposal may have the intention of reducing government spending, it is likely to be inefficient and burdensome for many Americans. It is important to consider the potential consequences of such a policy and explore alternative solutions that are both effective and equitable.
