Quoted Text

Understanding Payroll Taxes
From Susan Nathan, former About.com Guide
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Payroll Taxes
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Once you hire staff, you must start paying payroll taxes for each individual hired on. Payroll taxes include federal income, Social Security and Medicare. Depending on where your business is, this may also include state and city taxes.
Before paying taxes, all businesses must acquire a Federal Employer Identification Number (EIN) from the US government. Once a business has an EIN, they can file payroll taxes with the government. Employers are required to withhold the full amount of federal income tax. Employers are also required to withhold half of the Social Security tax and half of the Medicare tax from each employee’s pay check, and pay the remaining half of Social Security and Medicare taxes themselves.

Unemployment Tax

In addition to the payroll taxes listed above, employers must pay an unemployment tax for each individual that works at the company. This is called State and Federal Unemployment Taxes (SUTA and FUTA). The tax rate for FUTA is 6.2%, and based on the first $7,000 paid in wages to each employee during the year. Employers who pay their SUTA on a timely basis receive an offset credit of up to 5.4%. SUTA taxes vary by state.
Federal Income Tax

To figure out federal taxes, employers should have employees fill out a mandatory IRS W-4 form. This form is used to figure out federal taxes, and state and city taxes where applicable. To calculate total federal tax, use the employee's W-4, Employer's Tax Guide and Supplemental Employer's Tax Guide.
Social Security Tax

Social Security tax makes up one half of FICA (Federal Insurance Contributions Act). The tax rate for Social Security during 2008 is 6.2% of each employee’s salary, with the employer paying a matching amount. Both the employer and employee are only responsible for a limited amount of Social Security tax. This amount is paid for anything earned up to a wage base of $102,000 for the year 2008.
Medicare Tax

The other half of FICA is Medicare. Employers must withhold 1.45% of each employee's salary for the Medicare tax. In addition, employers must pay a matching amount.
State Income Tax

Depending on the state where a business is located, employers and employees may be required to pay state income tax. Taxes vary by state.
City and County Income Tax

Though there aren’t many cities or counties with an income tax, a few, like New York City, do have this tax. Check with the local government to see if there is an applicable local tax.

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The "General Welfare" Clause of the Constitution

The majority of unconstitutional spending is justified by the "general welfare" clause of the constitution. Shawn O'Connor of the Free Enterprise Society summed up this misconception in one of his speeches, paraphrased below:

"Discussion of the general welfare clause of the Constitution by the courts relies upon the Federalist Papers. This term simply means: Taxation was to protect the individuals' life, liberty and ownership of private property. One can go to Art. 1, Sec. 8, Clause 1 of the constitution and read the general welfare clause. Then one can do some history research and see what the Anti-Federalists had to say about this clause:

"That this clause conveys absolute power to the central government. Patrick Henry was very vocal in his opposition to putting this kind of language into the constitution. Madison, however, assured Henry and others that all the general welfare clause represented was a preliminary introduction prior to the enumerating the specific powers the delegates were about to grant to this new federal government and that the general welfare clause granted no new power to the government whatsoever. It was simply an introductory statement.

The Anti-Federalists still weren't satisfied. Hamilton and Madison came back to re-state that if the general welfare clause conveyed absolute power to the government, why would they go on to list the specific powers they were going to grant the government? That wouldn't make any sense at all if they were going to give absolute power to this government. It was finally conceded by all at the convention that the general welfare clause conveyed absolutely no power to the government." [End of comment.]

The general welfare clause of the constitution has been misused for personal gain by special interest groups to enrich the pockets of the banking cartel, by politicians hoping to "get that vote," and an all out push to turn America into a socialist country, beginning with the "New Deal" implemented by FDR and supported by a weak Congress. Lyndon Johnson took the quest to turn America into a socialist nation to new and grotesque heights.

How would you fund the government without any direct taxation?

The powers that be know it's just a matter of time before the truth reaches enough Americans about the voluntary income tax system. Already trial balloons are being floated to once again fool the people into some form of alternative tax in order to feed the central bank.

America functioned very well without an income tax throughout the history of this Republic. The answer to the question of funding without a direct tax is found is Article 1, Section 9 of the Constitution since 1787. It provides for Congress to pass a legislative bill for tax money to be paid by each state in proportion to its population.

Proper, constitutional funding will allow large amounts of money to fund a limited form of Republican government. To continue on the path of this massive and unconstitutional spending will bring a final and total collapse of the economy. Make no mistake about it.

Has your government been truthful?

Do you know why the "withholding tax" system was put into place? Let me provide you with just one shocking example of how things work behind the scenes:


Declassified (Confidential Committee Print)
Withholding Tax Hearing Before A Subcommittee of The Committee on Finance,
United States Senate, 77th Congress, Second Session on:
Data Relative to Withholding Provisions of the 1942 Revenue Act, August 21 and 22, 1942
(Printed for the use of the Committee on Finance)
United States Government Printing Office, Washington 1942
SUMMARY/Contents Statement of:
Friedman, Milton, Division of Tax Research, Treasury Department
Hardy, Charles O., of Brookings Institution
Jacobstein, Meyer, of Brookings Institution
Paul, Randolph E., Treasury Department

Overview

Because the war effort resulted in increased production and employment, which caused a sudden large influx of money into circulation, the Federal Government and Federal Reserve System had to find a method of "mopping up excess purchasing power" thereby control inflation and obtain immediate funds for the Treasury. Several plans were put forth before the House, Ways & Means Committee and the Senate Committee on Finance to accomplish this purpose.

The following points were made by the Senators and those testifying before the committee:

1. The overall purpose was to obtain immediate money for the war effort, to control inflation and to get the income tax on a current basis instead of being one year behind.

2. To accomplish this goal, it was recognized that a scheme was needed to reach the largest number of people.

3. That the scheme, regardless of whether it was a "coupon," "stamp" or "withholding of income tax at source," would constitute a "forced loan" to the Federal Government and it would apply to taxpayers and nontaxpayers alike, with exceptions.

4. Where an individual had money withheld and ultimately no tax liability, the individual would file an income tax return and that income tax return would constitute an automatic claim for refund.

5. The proposed plan was an emergency war time measure.

Hearing Experts, Beginning Page 99