Please don’t play an economist, you might hurt yourself.
Your point is not that government employees do not pay taxes (they do), it is that the taxes do not increase real revenues to the government. The taxes paid by government employees just move the money from one pocket of the government to another. The employees DO have their net wages reduced by the amount of income taxes (and other taxes) withheld from their gross wages. To put this another way - the employees have thier gross wages reduced by the taxes withheld, but their is no new revenue to the government.
need to proof before posting.
Uhm, isn't that what I said? You chose to use different words. Call it "taxes, rebate, refund, I don't care. Their wages are dependent on the private sector paying into the Treasury for the funds to be disbursed to the agency they work for. They don’t “pay” taxes. They could have their wages offset by the "taxes" they would be paying and there would still be a net decrease to the Treasury, but only in a slightly smaller amount.
The fact that all employees (private, state, federal, etc.) are forced to go through this exercise every April 15th is just that, an exercise. When I was in the military, I’d have rather had my pay reduced by the amount they were going to “tax” me rather than have to go through that BS of filing a damn return.
In the grand scheme of things, it makes absolutely no difference. It's damn game to make everyone look "equal". "See, us fed employees "pay" taxes just like you private sector folks." Bovine scatology.
My point is that federal employees or any employee dependent on gov’t largesse, do NOT pay taxes. They return a portion of their pay not just to the federal gov’t., but too a much more obnoxious arm of the gov't.
Which is the whole point, no new revenue, just the Three Card Monty or Shell Game called the 1040, played by all on April 15th.