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Today's Nuze

"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."

Ayn Rand

Nobody's listening.

THE TRUTH ABOUT OBAMA'S TAX 'CREDITS'

By
Neal Boortz
@ May 1, 2009 8:12 AM
Permalink | Comments (18) | TrackBacks (0)

Are you enjoying your whopping $10 a week from Obama's "Making Work Pay" tax credit? Well enjoy it while you can, because the government is more than likely going to re-seize it in the long run. This is because new IRS withholding tables could cause millions of taxpayers to receive more money than they are "entitled" to under the credit. For some, this will mean a smaller-than-expected tax refund. For others who calculate their withholding differently, you could end up owing the government, come next April.

Here are some prime examples of what some people may be facing.

-- A single worker with two jobs making $20,000 a year at each job will get a $400 boost in take-home pay at each of them, for a total of $800. That worker, however, is eligible for a maximum credit of $400, so the remaining $400 will have to be paid back at tax time--either through a smaller refund or a payment to the IRS.

-- A married couple with a combined income of $50,000 is eligible for an $800 credit. However, if both spouses work and make more than $13,000, the new withholding tables give them each a $600 boost--for a total of $1,200.

-- A single college student with a part-time job making $10,000 would get a $400 boost in pay. However, if that student is claimed as a dependent on a parent's tax return, she doesn't qualify for the credit and would have to repay it when she files next year.

And when it comes to Social Security and veterans, there are a whole heap of issues there too. But don't you worry. Tax cheat Timothy Geithner says that he is "exploring ways to mitigate that effect."

That should make you feel much, much better.

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What others are saying

  • taxidermy
    Who is really surprised by this? Did not BHO use his own mouth to put out the words "spread the wealth around"? Was it not Barry O who said "...under my cap-and-trade program, energy prices would necessarily skyrocket?"!!
    He has been telling us he is an unapologetic Socialist for over two years and it urks my backside when people act like it's the first time they ever heard about it. Stop your snivelling and do something about it. That's it. I'm done.
  • Tax Credit? No way
    This is merely a reduction in withholding % that will be a net reduction (or possibly increase) in the amount of taxes due next Apr. 15th.

    Now that's change the dimocrats believe in.
  • I wonder how long it will last?
    I guess my own tailbone is better than nothing, while it lasts. They aren't meeting their revenue goals, so it won't even last as a scam for the stupid for long.
  • Tax Credit
    Yeah, I've started receiving this so-called tax credit and it has me and everyone else I know worried that we'll end up owing when we file our 09 taxes...because we are HONEST citizens and actually file and pay our taxes (but that's another issue). If Obama wanted to give the eligible people a tax credit why couldn't the government have just sent out checks to individual and married filers like Bush did a couple of years ago? Then we would know we got exactly what we should and we won't owe! Wake up people! We aren't getting a tax credit we're getting screwed and we won't even get kissed afterwards!
  • Taxes
    We need the Flat Tax while we wait on the transition to the Fair Tax.
  • Tax reduction?
    I had the amount of the increase from my check and my wife's check redirected
    as additional Fed. Tax withheld.

    I knew there would be something with this "Tax Cut".
  • Mitigate the effect???
    That stupid @$$ed comment deserves a big WTF?

    They could bloody well "mitigate the effect" by voting in the GD "Fair Tax", and get rid of that bloviating piece of crap they call the effing tax code!
  • Tax scam
    This is simply a scam to fool poor bastards into thinking Barry O is looking out for them.

    I calculated that I will get an extra $800 / year through this "benefit" and my wife will take about $600.. that means, we'll pay back 600 next april because of this stupid withholding BS.

    And to think for 2008 we sent IRS $1300 and this year having gotten a promotion, I know I'm on the hook for that next bracket increase, and to top it all off, I'll have to give them back the $600 they didn't confiscate out of the kindness of their cold black socialist hearts?

    I'm sick of this "Taxpayer money" nonsense, I want the honest-to-god legally protected option of saying "no, you're not withholding ANY money and you're not holding me responsible for that tax" - but since it's confiscated revenue, they can do what ever the F they want, and when it's FINALLY time for the gov't to "invest" that money elsewhere (read: outside of the gov't) then SUDDENLY IT'S TAXPAYER MONEY AND OH NOES THE TAXPAYERS SHOULD NOT HAVE TO PAY?!! But we are anyway thanks to Barry, so F it. END RANT.
  • Boost in pay?
    "A single college student with a part-time job making $10,000 would get a $400 boost in pay."

    Neal... I'm disappointed that you'd make a mistake like this.

    It's not a $400 boost in pay, it's a $400 reduction in tax withholding.

    People need to understand that "pay" is not what government lets you keep, "pay" is what you make before the goverment seizes part of it.

    I'm disappointed that the talkmaster would make such an error!
  • Hallelujah
    I get paid bi-weekly. I got an increase in my paycheck of 6 American dollars. Yep, $6. I think I'll start planning my retirement early.
  • Bait-and-Switch
    Anyone with any intelligence saw this coming. I know someone who does the accounting for a business of 80 employees. Every one of the employees changed their withholding when Obama's "tax cuts" were implemented. They changed them to reflect what they knew was coming.

    http://publius772000.wordpress.com/2009/05/01/is-it-racist-to-call-obama-an-indian-giver/
  • Tax Credit?
    What tax credit? My take home pay didn't change.
  • "Tax Credit?"
    Tax credit my bottom side. The total tax my wife & I paid to to Uncle Sam last year was a little over $24K. That figure includes a "penalty" for not having paid all of it soon enough. It looks like this year I'm going to be paying a bigger penalty because Obama's IRS has changed the withholding rate. Does this mean that I'm more equal than the other guy that I'm supporting? Probably not.
  • Obama's gonna pay my CABLE BILL!
    Obama's gonna pay my CABLE BILL!!! Thank you Obama! Now I won't have to go cold turkey on the "plug-in drug".
  • "Tax Credit"
    Yeah, I just love my so-called stimulus given to help the economy.All I get is a $250 credit to be taken off on my 2010 income tax filing.Way to go, dumbass obama!You really know how to "stimulate" spending!This puerile idiot doesn't think anything through before he makes a stand.Incompetent.
  • won't spend it
    I wrote my senators the "Great Jim Webb" and Mark Warner and said I wouldn't spent my $10 a week for spite. I put it in my 401K. Maybe one day it will do something.
  • Withholding
    I don't know why you're complaining about this, Neal. You always complain (rightfully) that the purpose of withholding is to hide how much tax we really pay.

    I see this "mistake" as a good thing, because it means I had the use of this money during the year, instead of the government.

    We need to take our victories, however small, where we find them these days.

    P. Hamilton
  • Tax Credit
    All my research has shown that this is no tax credit. Just a reduction in withholding. The tax tables at the end of the year are going to be the same so people will get less of a refund or have to pay. It is just a big lie. Correct me if I am wrong.
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