It is still a scam. You know when withholding came into being, W.W. II. Was invented by the CFO of Macy’s to help with the war effort, primarily to not only get taxes before they were really due but also to sell War Bonds. The system worked so well it was kept. It is extortion pure and simple to get tax money before it is actually due. I really don’t care if I pay a penalty, no taxes due till the due date.
You see, we the people, put up with this abuse, along with many others and we shouldn’t.
I am guessing the due date you speak of is the due date for filing your income tax return. If so, then there is some confusion. Your tax return is merely an accounting of income earned and tax paid during the year. It is NOT a twx payment, although a payment may be due with the return.
Generally, if a transaction is taxed, the tax is due at the tome of the transaction. If you live in a state with a sales tax, for example, you pay the tax at the time you purchase an item. If you import goods, you pay import duties at the time the goods are imported. Similarly transactions involving income earned by individuals are taxed, so that tax theoretically is due at the time the transaction occurs. For normal wage earners this is moot; the tax is automatically paid by your employer on your behalf. For some, it would get unwieldy to pay every time you earned income. Business owners, for example would have to pay on daily profits. To alleviate this, the law allows quarterly payments for such taxpayers.
Automatic withholding is not really the issue here. Where I live, it has only been recently that employers have been required to withhold local wage taxes. Prior to that time, these taxes were still due when income was earned, but the law provided for quarterly remittances similar to what the IRS requires.
You may not like or agree with this, but it’s the current law. Do not mislead people into thinking otherwise. If you fail to withhold sufficient taxes to cover your tax liability, the IRS has every roght under current law to impose penalties. That is the reality and your opinion (which I understand and can concur with BTW) is not relevant. Your post could cost someone money if they believe what you wrote and failed to pay quarterly estimated taxes when required to do so.