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MichMan

(13,559 posts)
4. How?
Fri Nov 29, 2024, 12:50 PM
Nov 29

By diverting all their residents federal tax payments and FICA contributions to the state?

The vast majority of these taxes paid by blue states are from tax withholding from individual taxpayers' paychecks. Currently, that means they are withheld by their employers and sent directly to the US Treasury through the IRS. The state would somehow have to be able to divert all those remittances towards themselves instead. Not sure how they would be able to do that.

Won't that mean that residents would be charged with tax evasion, as well as not making their Social Security and Medicare contributions, and thus affecting their future retirement? Would taxpayers be angry to have their federal taxes and FICA withheld from their paychecks, and kept by the state instead of being sent to the IRS?

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