Call me unpatriotic for suggesting that Obama and the Democrats’ spending is completely out of control, and that WE THE AMERICAN PEOPLE are not so naive as to believe that it’s a bill we’ll never have to pay.
By STEPHEN OHLEMACHER, Associated Press Writer Stephen Ohlemacher, Associated Press Writer – Thu Apr 30, 8:08 pm ET
WASHINGTON – Millions of Americans enjoying their small windfall from President Barack Obama’s “Making Work Pay” tax credit are in for an unpleasant surprise next spring.
The government is going to want some of that money back.
The tax credit is supposed to provide up to $400 to individuals and $800 to married couples as part of the massive economic recovery package enacted in February. Most workers started receiving the credit through small increases in their paychecks in the past month.But new tax withholding tables issued by the IRS could cause millions of taxpayers to get hundreds of dollars more than they are entitled to under the credit, money that will have to be repaid at tax time.
At-risk taxpayers include a broad swath of the public: married couples in which both spouses work; workers with more than one job; retirees who have federal income taxes withheld from their pension payments and Social Security recipients with jobs that provide taxable income.
The Internal Revenue Service acknowledges problems with the withholding tables but has done little to warn average taxpayers.
No word on if Treasury Sec/head of the IRS/confessed tax cheat Tim Geithner will be paying this or not.
Author of “Reparations and America’s 2nd Civil War
Reparations and America’s 2nd Civil War: Malensek, Scott: 9798864028674: Amazon.com: Books
Carrot and Stick! Give us the little bitty carrot and later we hit you with a Big Stick.
I am an unemployed aircraft worker in Wichita. I get a 25 dollar a week “stimulus” kicker in that check. And it sounds like next year, I get to give it back?!?!?!?!?!
Now for the anger! I want the individual who figured out this gem in the street in front of my house. We will strip to the waist(regardless of weather) and go for it. I win, the whole almost 4 billion dollar budget/spending bill goes away and he goes fishing for the rest of his life. He wins, that ain’t gonna happen!
Hello?
They screwed up the withholding tables so that they take less than they are supposed to – meaning you may have to pay it next April.
How does this amount to “giving back the tax cut”? You will be “giving back” nothing – just paying what you owed in the first place. And you get the full tax cut.
Do you think we are stupid or something?
Yes they know we are stupid. They pass bills no one reads, to do things no one has a clue about. What’s not to like with a job like that.
Where is the outrage about the Chrysler bankruptcy, after sending Billion down the rat hole — for what?
I AM NOT SURPRISED. WHAT WILL SUPRISE ME IS THAT SOME PEOPLE WILL BE SURPRISED ABOUT THIS. MIND-BOGGLING
Scott:
I beat you to the punch. I read this already (I’m still glad you posted it though) and I almost fell out of my chair at work. Amazing……a tax cut that isn’t a tax cut.
Question:
Have you heard as to whether or not there will be any future changes to the tax withholding tables?
I mean is this their screw-up or do they just think we’re that stupid?
Ron
@Ron:
Yes, they think we’re that stupid.
I commented on this issue on a couple of other threads here when the resident leftists tossed around the 95% tax cut claim.
The right hand giveth, the left hand taketh away.
and the very best part, when they start to charge the small business owners that don’t provide health insurance i will be making even less money. my boss has already said that if that kicks in she will drop our commission to match, she won’t pay anything more because in our state business’ are taxed beyond belief. this isn’t a tax cut. this is a sorry excuse for a giant lie. and his wife runs around in $540.00 shoes. what a fraud
Thanks Aye.
I have several liberal friends that are going to get an earful when I see them this evening. I can’t wait to hear what their “explanation” will be.
Have a good weekend
Ron
That’s no screwup. Politicians ALWAYS dump the news they want reported least on Fridays. It’s called the Friday Trash Dump. Bush did it too. C’mon, does anyone really REALLY believe that this just accidentally was released AFTER his press conference and 100 day chest beating?
I just have to say, this blog is phenomenal.
Thanks for all the work you put into this.
I heard something about this when it was first enacted. From what I understood then was that they were adjusting the withholding tables but not the tax tables. So when I did an estimate whent he “tax cut” went into affect, I realized that I would be under withheld. I try to make my withholding land within $100+- of my liability. What I figured out was that a married couple will get $800 tax credit, but have $1200 less withholding, leaving a $400 shortfall. And probably an under payment penalty for some people. So I changed my (and my wife changed hers) W-4 to withhold the same amount that it went down.
Nice try OB.
@walterc:
Bingo Walter!
Bingo.
This is classic bait and switch sleight of hand stuff.
In the spirit of Obama throwing us under the bus. A great video from Zo
http://www.youtube.com/watch?v=X1E-V0QHets&feature=channel_page
Its titled.. under my bus. I think it should lighten up your day a little.
Support this guy!!!!!!!!!!!!!!!!!!!!!!!!!!!!
This is exactly what is happening in the UK… see here:
http://www.google.com/search?ie=UTF-8&oe=UTF-8&sourceid=navclient&gfns=1&q=tax+credit+overpaid+UK
And the Inland Revenue people are brutal about collecting it — if needs be, your kids go without, tough.
“From what I understood then was that they were adjusting the withholding tables but not the tax tables. ”
My sister works in downtown Portland, OR, a swamp of far lefties. Several of her co-workers were thrilled with their ‘bigger’ paychecks. When my sister explained that it was only the amount of withholding that was being adjusted, they refused to believe her. The biggest outrage is that these morons are allowed to vote.
So, what will this do to Zero’s poll numbers next spring? And what effect, if any, will it have in November of next year?
I tried to explain the difference to an 0bot on NQ the other day. They just refuse to get it. Only when they have to pay more tax next year will they finally understand the shell game the shyster flim flammers have played on them. As in “What happened to my tax cut?” Not to mention that there are 6 million unemployed who have no payroll deductions. We, the lucky ones (at least in states taking stimulus money) get a whopping $25/week from the Feds. Oh, well. It still keeps me in the low income bracket after my standard exemption. Wonder how they’ll tweak that?
I can only hope for a blood bath in 2010 getting rid of the Dem majority and marginalizing this nut case for the rest of his one term.
And if you are a pack-a-day smoker, the $0.62 tax increase takes around $18 (30 days/month X $0.62/day) from your stimulus each month
Enjoy!
Jeff V
Well Michelle already spent her tax cut on $540 sneakers. Looks like she’ll have to put them up on EBay to repay her taxes.
lets get real, what obama meant by ‘tax cut’ was a tax cut for him and his friends. Michelle won’t have to put anything on Ebay. Repay taxes? Thing of the past for the obama family.