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That's not really how it works - there's no one big sack of cash that gets handed over by the state, individual businesses (and people) pay their taxes to the IRS directly, and then separately to the state tax agencies (obvs leaving out some of the draconian nuance here). States don't have a practical method of withholding taxes short of going to every business and demanding they stop paying the feds. While hypothetically possible at some point, it's not in the short term feasible.
There is a big sack of cash that gets handed over by the state: the federal payroll taxes for all the state government employees.
In comparison to all federal taxes payed out by people within a state, that's a pretty miniscule sack of cash. The government is among the largest employers in every state true, but their payroll contributions aren't anything compared to the whole and they're paltry compared to things like business-derived tax revenue. States could withhold them, yes, but it wouldn't do much if they did.
I disagree. I think having everyone send their federal taxes to a state entity for leverage purposes would be an interesting development. The individual is protected, and the state holds the bag.
I'm confused, sorry: what are you disagreeing with?
How would the individual be protected from the IRS if they are penalized by the IRS for non-payment of taxes. Just because you sent a check to some state entity doesn’t mean those federal taxes have been paid, and that state entity likely wouldn’t have the authority or resources to protect you from the IRS.
It would be kind of like sending your mortgage payment to your lawyer when you have a dispute with your bank. You still owe that money to the bank, and they can take action for non-payment.
Some jurisdictions allow escrow payment when in a legal conflict, in which case you actually might be sending money to your lawyer instead
... Probably doesn't apply for US taxes, but it's a thing
Well, kinda. But in this example, you've put the money in escrow, which gives you protection while everything plays out in court
But you as an individual won’t be suing the IRS so escrow makes no sense in this case.
Damn, looks like Trump shouldn't have slasher the IRS budget and fired all their auditors.
That seems like a trivial position to take.