The requirements for income tax withholdings began with the Current Tax Payment Act of 1943. Overturning this withholding requirement would push tax remittances back to the people who are being taxed. The blinders we all have currently as to the amounts paid, and the separate line items we must pay for, would be removed. The idea that we receive a "gift" from the feds each year when we receive a tax refund would be wiped out. See this article from The American Thinker, which approaches the issue from a legislative direction.
In several searches on the web, I haven't yet encountered references to any cases that challenge the requirements placed on employers by these tax withholding policies. Yet it seems this would be ripe for a challenge.
- The employers are accomplishing the withholding at their own cost
- The employers are accomplishing the remittance at their own cost
- The employers are serving as an agent of the federal government, impacting the natural relationship forged with employees
I would think the first two bullets above would fall under the 5th Amendment, as private property taken for public use without just compensation. The third bullet, and I think the most compelling, might reasonably be considered a 1st Amendment claim...
Washington State, being one of the several states without an income tax, would seem an excellent place from which to launch the lawsuit, as the issue would be limited to federal withholdings, and no separate state laws would enter into the picture to muddy things.
This in and of itself is a very appealing reason to run a company. I would love to launch this lawsuit.