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this post was submitted on 17 Jul 2025
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Nearly 10% Of S&P 500 Companies Paid No Tax in 2023 — Including Tesla
Way ahead of you!
For the vast majority of salary earners, taxes are collected at the point of wage payment. You fill out a W-2 when you are hired and your employer sets aside a percentage of your income based on your anticipated tax debt. This often results in over payment, at which point taxpayers file returns to recoup the balance.
For instances in which a taxpayer owes on their return and fails to pay the balance, the IRS can simply order the employer to zero-out exemptions on the W-2 and recoup the excess due over time plus a penalty. Alternatively, they can file with the courts to garnish wages in excess of the W-2, put liens on property, and seize unprotected assets.
This is incredibly easy for the professional legal and prosecutorial team at the IRS. It is comparatively much harder to resist by individuals - even in large numbers - without comparable legal firepower. Your employer is almost certainly not going to assist in tax avoidance, as that exposes the company to legal liability.
You can absolutely fill out your W2 to have no withholdings taken out of your check. I know people who do this and put the money in a high yield savings or investment account.
You can, and when you don't pay your taxes the IRS will garnish your paycheck for the amount owed plus interest and penalties. Only the truly rich get away with not paying.
And your HR department can reject it, then tell you to fill it out correctly.
You're either gullible enough to believe some Sovreign Citizen tier liars or a liar yourself.
I'm not saying they don't pay their taxes. They just don't have them taken out of their checks each month. They put the money somewhere it can grow, then pay their taxes with it at tax time.
There are absolutely people who do this. They will pay a penalty for not withholding when they file but they probably still come out ahead even with just a HYSA.