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"The stimulus package includes a $400 per-worker tax credit for 2009 and 2010, which will reduce the amount of taxes withheld from your paycheck by about $13 per week in 2009 and about $7.70 per week in 2010. (The difference in 2010 is due to the $400 being spread out over the full 12 months)."
What a load of BS that "Tax Credit" is. All Obama did was manipulate everyone's withholding, but did nothing to reduce the amount that people will still owe at the end of the year. So say you plan your withholdings so that you neither get a refund or owe taxes at the end of the year. Well, because Obama manipulated how much was withheld from your checks, you will now owe money.
I think the average person who doesn't fully grasp this tax credit is thinking wow, thanks for the extra $400, Obama is the man! In reality, it does nothing to reduce the amount of federal tax owed and has the net effect of reducing your refund or increasing the amount you owe.
When the bush cuts expire, most American's won't even notice.
Even most who they might effect, won't bat a eye since they have "their people" do their taxes, and wouldn't notice the change one way or another.
Then clearly you do not understand the Bush tax credits. Aside from the across the board decreases in federal tax brackets (ie., 15 percent tax bracket was reduced to 10 percent and the 39.6 percent tax rate fell to 35 percent), there is also the elimination of the marriage penalt, increases for the child tax credits, and estate taxes declined.
I hardly include the people in the 10% tax bracket to be part of "those who have their people" do their taxes.
What a load of BS that "Tax Credit" is. All Obama did was manipulate everyone's withholding, but did nothing to reduce the amount that people will still owe at the end of the year. So say you plan your withholdings so that you neither get a refund or owe taxes at the end of the year. Well, because Obama manipulated how much was withheld from your checks, you will now owe money.
I think the average person who doesn't fully grasp this tax credit is thinking wow, thanks for the extra $400, Obama is the man! In reality, it does nothing to reduce the amount of federal tax owed and has the net effect of reducing your refund or increasing the amount you owe.
Except that the OP says MORE is being withheld from both her and her husband's checks! So which is it? More being deducted, or less?
Then clearly you do not understand the Bush tax credits. Aside from the across the board decreases in federal tax brackets (ie., 15 percent tax bracket was reduced to 10 percent and the 39.6 percent tax rate fell to 35 percent), there is also the elimination of the marriage penalt, increases for the child tax credits, and estate taxes declined.
I hardly include the people in the 10% tax bracket to be part of "those who have their people" do their taxes.
I understand that the 2.8 trillion that went to the upper income brackets from those cuts, could have been better used balancing the budget.
But thats OK. More for me.
What a load of BS that "Tax Credit" is. All Obama did was manipulate everyone's withholding, but did nothing to reduce the amount that people will still owe at the end of the year. So say you plan your withholdings so that you neither get a refund or owe taxes at the end of the year. Well, because Obama manipulated how much was withheld from your checks, you will now owe money.
I think the average person who doesn't fully grasp this tax credit is thinking wow, thanks for the extra $400, Obama is the man! In reality, it does nothing to reduce the amount of federal tax owed and has the net effect of reducing your refund or increasing the amount you owe.
Speaking of BS, somebody has been lying to you. Wouldn't be that rightwing radio you're so fond of?
The credit is refundable. Grasp that.
1040.com - Making Work Pay and Government Retiree Credits (http://www.1040.com/site/FederalTaxes/TaxCredits/MakingWorkPay/tabid/352/Default.aspx - broken link)
Did your state and local taxes go up? That has nothing to do with Obama. Social Security and Medicare deductions haven't changed. Withholding may have changed but that was related to a tax credit. You really don't know if your tax rate has gone up until you do your 2010 taxes. Withholding isn't taxes.
"The stimulus package includes a $400 per-worker tax credit for 2009 and 2010, which will reduce the amount of taxes withheld from your paycheck by about $13 per week in 2009 and about $7.70 per week in 2010. (The difference in 2010 is due to the $400 being spread out over the full 12 months)."
Speaking of BS, somebody has been lying to you. Wouldn't be that rightwing radio you're so fond of?
The credit is refundable. Grasp that.
1040.com - Making Work Pay and Government Retiree Credits (http://www.1040.com/site/FederalTaxes/TaxCredits/MakingWorkPay/tabid/352/Default.aspx - broken link)
Getting a total of an $800 dollar refund is fun...until you "NOTICE" you've paid an additional $3,000.00 in federal taxes for 2009. As a self-employed paying quarterly taxes..
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