From Obama, the Tax Cut Nobody Heard Of

NY Times ^ | 10/19/10 | Michael Cooper

[Nachum]

HUNTERSVILLE, N.C. — What if a president cut Americans’ income taxes by $116 billion and nobody noticed? It is not a rhetorical question. At Pig Pickin’ and Politickin’, a barbecue-fed rally organized here last week by a Republican women’s club, a half-dozen guests were asked by a reporter what had happened to their taxes since President Obama took office. “Federal and state have both gone up,” said Bob Paratore, 59, from nearby Charlotte, echoing the comments of others. After further prodding

[Nachum]

Another really dumb idea. Reduce taxes by a miniscule amount while destroying the engine that produces revenue in business. Over regulation, increased taxation on investment, and intentionally increasing costs in the health care system and oil industry, and coal industry.

Idiots

[circlecity]

Many of these “cuts” were actually tax credits which gave refunds to people that paid no taxes.

[Noamie]

“After a little proding...” one would discover that the cut wasn’t the Democrats’ idea nor were they really for it... but hey - why should that enter into the conversation if you’re a NY Times reporter?

If the Dems actually liked tax cuts then they would have extended Bush’s before leaving town. But hey - why should a NY Times reporter focus on facts when you can make fun of some “hicks” and feel smartier?

[E. Pluribus Unum]

Get government the #@%& out of my life.

I'll notice that.

[GeronL]

tiny tax credits while your raising other taxes.

[9YearLurker]

I don’t get this. Doesn’t a change in withholding come out in the April 15th wash, when the same amount of taxes are ultimately due?

[OrioleFan]

A change in withholding rate doesn’t change the amount owed on April 15th, does it?

[OrioleFan]

And could it possibly put someone in jeopardy of getting nailed by the AMT or subject to underwithholding penalty?

[KarlInOhio]

I don’t get this. Doesn’t a change in withholding come out in the April 15th wash, when the same amount of taxes are ultimately due?

It really was removed from the taxes. It is on line 63 of the 1040/line 40 of the 1040A/line 8 of the 1040EZ (after you fill out schedule M to see how much it is for you)

[griswold3]

Exactly!
Employers were given new charts with which to figure the employees withholding income taxes. The amount withheld was decreased but the overall rates were unaffected.
Some who worked more than one job were caught owing Federal income taxes as the amount withheld was insufficient to cover their liability.
(Tax ‘credits’ aren’t the same as tax ‘cuts’. IMHO)

[Pessimist]

Tax cuts? News to me.

The article mentions: “had cut taxes for 95 percent of working families by changing withholding rates”.

Chanign the witholding rate is not a tax cut. Is that all they’re talking about?

As for any targeted anything, it never applies to me.

[Secret Agent Man]

Get government out of my life, AT EVERY LEVEL.

Does no good if other levels of governments will just fill the void.

[Reagan Man]

Officials estimated it would mean about $13 a week more in people's paychecks this year when withholding tables are adjusted in late spring. Next year, the measure could yield workers about $8 a week. Critics say that's unlikely to do much to boost consumption. Link

Started out as a twelve-pack savings in 2009 and ended up being a six-pack in 2010. BFD!

[Pessimist]

My thoughts too.

So I Googled it.

Apparently some of that bad surprise in April is offset by the “Making Work Pay” act, whereby we’re supposed to get a $400/yr individual ($800/yr couple) tax credit.

I honestly did not even know that. I guess I tend assume anything the administration says is BS.

At any rate, of course this credit is “refundable” (ie. you get it even if you pay no taxes) so it’s an out-and-out grant to the freeloaders.

And, as a smoker, my “credit” has already been more than consumed by the higher cigarette taxes.

[9YearLurker]

Thanks for the research!

[kevao]

A change in withholding rate doesn’t change the amount owed on April 15th, does it?

Nope. For 2009 they reduced my withholding but did not adjust the tax tables. Result: I was underwithheld. So with the penalty I had to pay, my tax "cut" ended up being in effect a tax increase.

[greeneyes]

Dems never give across the board tax cuts. They prefer to target them to the groups who vote for Dems. They often call these groups by certain code words for example: working families (dem code for union workers).

Thus they want to hand out tax cuts or other "help" to the people that they “deem” are deserving, just another way to be in control of other people's lives.

The bottom line is that my FEDERAL taxes went up $1500 in 2009 compared to 2008, so Obama and the dem congress critters raised my taxes - end of story.

[Hoodat]

Apparently some of that bad surprise in April is offset by the “Making Work Pay” act, whereby we’re supposed to get a $400/yr individual ($800/yr couple) tax credit.

That $400/yr credit is $200 less than the $600 credit we got in 2008. So effectively, everyone working had their taxes increased by Obama.

[chris_bdba]

There was no tax cut and anyone who says there was is a liar.What there was was a cut in what was withheld from paychecks the tax rate stayed the same.