[Homer_J_Simpson]

This was a time when federal taxation was still a relatively new thing and before witholding was instituted.

I am looking forward to seeing how that little wrinkle came about. Did it happen in 1942? I once heard that a young Milton Friedman had a hand in it. At that point in the war the folks on the home front were unlikely to squawk to loud about a sacrifice that would be seen as helping the war effort. I guess Ways and Means just forgot to terminate it when the war ended.

[Homer_J_Simpson]

Now I’m thinking the 1942 event I am waiting for was not the witholding but something else. Like when employer-provided health insurance became widespread as a response to a wage freeze. You could trace our problems today back to that development.

[iowamark]

http://www.infoplease.com/ipa/A0005921.html#ixzz1G86lalYl
“”History of the Income Tax in the United States”
...With the advent of World War II, employment increased, as did tax collections—to $7.3 billion. The withholding tax on wages was introduced in 1943 and was instrumental in increasing the number of taxpayers to 60 million and tax collections to $43 billion by 1945.”

[PeterPrinciple]

before witholding was instituted.

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Don’t remember all the details but think about the problem. How do you get people to pay this years taxes AND next years taxes in the same year?