I've always said that corporations were tax-farmers for the State. . . .

. . . but this is more than I suspected.

Many libertarians take issue with the fact that I personally fear/dislike/disdain BIG CORP as much as BIG GOVT and see both as potentially dangerous to human freedom.

This, however, is mind-numbing.

Apparently, the States are now allowing many corporations just to keep the State income taxes that their workers have withheld from their paychecks.  Nothing like cutting out the middle man when handing out corporate welfare, is there?

From David Cay Johnston at Reuters:

Across the United States more than 2,700 companies are collecting state income taxes from hundreds of thousands of workers – and are keeping the money with the states’ approval, says an eye-opening report published on Thursday.

The report from Good Jobs First, a nonprofit taxpayer watchdog organization funded by Ford, Surdna and other major foundations, identifies 16 states that let companies divert some or all of the state income taxes deducted from workers’ paychecks. None of the states requires notifying the workers, whose withholdings are treated as taxes they paid.

General Electric, Goldman Sachs, Procter & Gamble, Chrysler, Ford, General Motors and AMC Theatres enjoy deals to keep state taxes deducted from their workers’ paychecks, the report shows. Foreign companies also enjoy such arrangements, including Electrolux, Nissan, Toyota and a host of Canadian, Japanese and European banks, Good Jobs First says.

Why do state governments do this? Public records show that large companies often pay little or no state income tax in states where they have large operations, as this column has documented. Some companies get discounts on property, sales and other taxes. So how to provide even more subsidies without writing a check? Simple. Let corporations keep the state income taxes deducted from their workers’ paychecks for up to 25 years.