Withholding of Municipal Earnings and Income Taxes from Salaries of Federal Government Employees

WHEREAS, agencies of the Federal Government do not withhold municipal earnings and income taxes from the salaries of government employees claiming they do not have legislative authority for withholding a municipal tax from salaries; and

WHEREAS, the Federal Government is the only governmental agency in most jurisdictions that refuses to withhold municipal earnings and income taxes; and

WHEREAS, the refusal to withhold causes a tremendous administrative expense in the offices of local tax authorities in that it requires the expense of collecting and processing returns from each individual government employee; and

WHEREAS, refusal to withhold imposes a burden on the government employee in that he is required to pay the tax in a lump sum periodically; and

WHEREAS, it has been proved that the withholding of local earnings and income taxes does not impose an additional cost on the computer payroll centers.

NOW THEREFORE, LET IT BE RESOLVED: That the Government Finance Officers Association go on record approving and adopting this resolution that the Congress of the United States pass enabling legislation that will authorize federal agencies to withhold municipal earnings and income taxes from the salaries of government employees.

• Publication date: June 1967