Tuesday, August 9, 2011

Chris Blattman hires a nanny

And becomes more of a Republican in the process:
For me to persuade someone to go on the books, I basically have to pay both their taxes and the employer contributions, so that they get the same take-home pay. This amounts to a 25-30% premium. But this still isn’t my main complaint. The premium hurts, and I have mixed opinions on taxing employment, but it’s not the level of taxes that frustrates me. 
As far as I can tell, I need to submit taxes or withholding to at least seven different agencies at different levels of government. What if I miss one? A friend (and a blogger some of you may know) missed a minor payment to one of the seven, by accident, and got slapped with a $10,000 fine. The government should have added a little note to the bill: “Thanks again for being among the 2% who actually try to pay taxes.” 
It’s sufficiently complex, and I’m sufficiently bad at accounting, that it actually makes econmic sense for me to pay hundreds of dollars a year to a firm to manage this mess. Madness.

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