PAYE is a great way for the government to collect taxes.
Its game set and match to the government
Government - 1
Taxpayer - 0
Problems with the income tax is, it tends to fall more on the employee when unemployment is high, and more on the employer when unemployment is low. Essentially kicking each group when they are down and adding to the cycle of boom and bust.
Income tax may seem to be the fairest tax yet in fact it is anything but. Generally, it is only honestly paid by those under the Pay-as-You-Earn scheme (PAYE). Even if they deign to make a tax return, the self-employed can, at worst, reduce their liability very substantially or make it vanish altogether by setting cost against their gross income.
Because income tax is only paid in full by those under PAYE, it is far from being a means of redistributing wealth according to income. Rather, it is simply a means of shearing the least mobile taxable sheep. If it could be enforced, a wealth tax would be a much more equitable means of taxation than income tax.
Income Tax is the most obvious tax through a person’s wage slip.