Fact Check: "States collect federal taxes from employee paychecks."
What We Know
The claim that "states collect federal taxes from employee paychecks" is misleading. In the United States, federal taxes, including income tax and Social Security contributions, are collected by the federal government, specifically the Internal Revenue Service (IRS). Employers withhold these taxes from employee paychecks and remit them directly to the federal government.
While states do have their own tax systems and may collect state income taxes from employee paychecks, they do not collect federal taxes. According to the IRS, employers are responsible for withholding federal income tax from employees' wages and sending that money to the federal government, not to state governments (IRS).
Analysis
The assertion that states collect federal taxes conflates the roles of state and federal tax systems. Federal taxes are distinct from state taxes, and the mechanisms for collection are separate. States may impose their own income taxes, which are collected from employees' paychecks, but these are not federal taxes.
The IRS provides clear guidelines on tax withholding and remittance processes, emphasizing that federal taxes are solely the responsibility of the federal government (IRS). Furthermore, reputable financial and tax resources consistently clarify the difference between state and federal tax obligations, reinforcing that while states may collect taxes, they do not collect federal taxes (Tax Foundation).
The sources available for this claim do not provide relevant information regarding the distinction between state and federal tax collection, which raises concerns about their reliability in addressing this specific claim.
Conclusion
Verdict: Unverified
The claim that "states collect federal taxes from employee paychecks" is unverified and misleading. The evidence indicates that federal taxes are collected by the federal government, not by state governments. While states do collect their own taxes, they do not have the authority to collect federal taxes from employee paychecks.
