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To: eyespysomething
FWIW, according to the Federal Reserve Bank of Dallas:

"Friedman contributed to another important effort while in Washington during World War II. At the Treasury Department, he helped create the current federal income tax withholding system. Friedman says he now regrets his role, although at the time he believed the new system was superior to the one it replaced (Friedman and Friedman 1998, 123). Working in Washington gave him great insight and the chance for a firsthand look at how bureaucracies function. http://www.dallasfed.org/research/ei/ei0202.html

13 posted on 11/19/2006 8:24:52 PM PST by DeaconBenjamin2
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To: DeaconBenjamin2
The Current Tax Payment Act of 1943 then revolutionized the income tax by making withholding taxes universal. The withholding tax was part of the new tax plan offered by Beardsley Ruml (1894–1960), the chairman of the New York Federal Reserve Bank and treasurer of R.H. Macy and Co.

snip

Surprisingly, it was a free market economist who helped the federal government implement the withholding tax in the first place.

The Curse of the Withholding Tax, Ludwig von Mises Institute

14 posted on 11/19/2006 8:36:06 PM PST by eyespysomething
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