the wayside in keeping up with its demands." Each year, one-third of all U.S. employers are penalized in con- nection with the payroll tax deposit rules, which are so complicated that even Inter- nal Revenue Service officials apparently don't understand them. The GAO found that 44 percent of the penalties meted out under those rules were wrongly imposed.
Surely, however, simply raising taxes a little should not increase the system's costs. But Payne contends that not only do the economic-disincentive...