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Government Institutes Withholding Taxes On Wages And Salaries


To pay the rising costs of the World War II, Congress imposes income taxes on people with average incomes. So many people default, because they have not saved sufficiently to pay their taxes, that the government creates a new system for collecting income taxes by mandatory “withholding from wages and salaries.” Employers are required to deduct the tax from employees’ salaries before paying them.