[Shannon]

Please correct me if I'm wrong but I was told that the withholding rates were changed to give folks the piddly $400 extra BUT that the tax rates haven't changed. If this is true, people will get a surprise next year. They'll find they owe money because enough wasn't withheld.

[jveritas]

You are right the tax rates did not change and hence this is not a tax cut. The surprise for all tax payers is when the Bush tax cuts expire on December 31 2010 and then they will see a much larger tax increase on them. For example the 10% tax bracket will go up to 15% ( 50% increase), the 25% will go up to 28%, the 28% will go up to 31%, the 31% will go up to 34% and the 35% will go up to 39.5%. However based on the trillions of dollars that Obama wasted on welfare and “toxic” assets and the more trillions that he is going to waste then I guarantee for you that people will be paying much more in taxes than just the increases I mentioned above. I expect that the top bracket to be over 60% by 2012.