http://www.cnbc.com/id/39265847
Can you imagine this?
How big would a government have to get to handle this type of collection and disbursement.
Think weekly, bi-weekly, and monthly for all employers.
Now think of the bureaucracy that you would have to go through if there was a glitch and they didn't send you your cut of the paycheck.
If the company owned back taxes would they garnish YOUR paycheck to bring them under compliance?
"Pay as you earn" is definitely a little tell into how bad the UK's Government needs every drop of money it can get it's hands on.
The UK's tax collection agency is putting forth a proposal that all employers send employee paychecks to the government, after which the government would deduct what it deems as the appropriate tax and pay the employees by bank transfer.
Sharon Lorimer
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The proposal by Her Majesty's Revenue and Customs (HMRC) stresses the need for employers to provide real-time information to the government so that it can monitor all payments and make a better assessment of whether the correct tax is being paid.
Currently employers withhold tax and pay the government, providing information at the end of the year, a system know as Pay as You Earn (PAYE). There is no option for those employees to refuse withholding and individually file a tax return at the end of the year.
If the real-time information plan works, it further proposes that employers hand over employee salaries to the government first.
