While the government pays its employees a gross amount and then withholds the income tax from their paychecks,...
Seems pretty straight forward to me.
First, a tax on an individual's income is not a tax on the source of that income. Taxing the government employee's income in not taxing the government. This is both legal, and logical.The income tax taxes income whether the source is government or the private sector, and by doing so, taxes government output. While the government pays its employees a gross amount and then withholds the income tax from their paychecks,...Seems pretty straight forward to me.