Midnight Marauder
Rookie
- Feb 28, 2009
- 12,404
- 1,939
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- Banned
- #1
Many folks are already noticing their greatly reduced income tax returns. This is because the "Obama tax cut" wasn't a cut at all, it was a tax credit.
The amount withheld was reduced without the tax rate tables being changed. This means that your $400 tax "cut" disappears when you do your taxes.
For folks who always played it close to the vest, and used to get $2-300 back from the IRS year after year, they'll find themselves OWING!
Exactly like the Bush "tax rebates" we all remember, they involved no reduction in tax rates, or improved incentives anywhere. They were based on a Keynesian rationale, just like Obama's tax credits -- stimulate the economy by increasing government deficits and providing cash rebates for people to spend.
And, of course, Bush's tax rebate stimulus package didn't work. The economy continued to worsen throughout the year, and financial markets collapsed in the fall. Henry Paulson was back the following September asking for another $700 billion, to save the economy supposedly from complete collapse, and another depression.
When is a "tax cut" not a tax cut? When they "give" you more money to spend, but don't bother reducing the rates or changing the tables. And 95% of Americans are going to feel the bite of this faux "tax cut."
The amount withheld was reduced without the tax rate tables being changed. This means that your $400 tax "cut" disappears when you do your taxes.
For folks who always played it close to the vest, and used to get $2-300 back from the IRS year after year, they'll find themselves OWING!
Exactly like the Bush "tax rebates" we all remember, they involved no reduction in tax rates, or improved incentives anywhere. They were based on a Keynesian rationale, just like Obama's tax credits -- stimulate the economy by increasing government deficits and providing cash rebates for people to spend.
And, of course, Bush's tax rebate stimulus package didn't work. The economy continued to worsen throughout the year, and financial markets collapsed in the fall. Henry Paulson was back the following September asking for another $700 billion, to save the economy supposedly from complete collapse, and another depression.
When is a "tax cut" not a tax cut? When they "give" you more money to spend, but don't bother reducing the rates or changing the tables. And 95% of Americans are going to feel the bite of this faux "tax cut."
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