Obama tells Treasury to begin cutting taxes

[Jeep789]

Source: Reuters

WASHINGTON (Reuters) – President Barack Obama ordered the U.S. Treasury on Saturday to implement tax cuts for 95 percent of Americans, fulfilling a campaign pledge he hopes will help jolt the economy out of recession.

The tax cuts are part of a $787 billion economic recovery plan passed by the Democratic-controlled Congress over Republican opposition. The aim is to put more money in the pockets of Americans and stimulate the economy by increasing consumer spending.

"I'm pleased to announce that this morning the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks, meaning that by April 1st, a typical family will begin taking home at least $65 more every month," Obama said in his weekly radio address.

"Never before in our history has a tax cut taken effect faster or gone to so many hard-working Americans," he said.



Read more: http://news.yahoo.com/s/nm/20090221/ts_nm/us_obama

[jtbrick]

1. Does that mean less of a refund or possibly owing

more next year? This doesn't appear to change any tax rates, just the withholding. I wonder if it may be a good idea to adjust the w-4 form.

[Thothmes]

17. They had better not adjust the withholding without adjusting

the tax tables. Just finished up this years taxes. Got about 87.00 back from the feds. I like to manage my withholding so that at the end of the year I get less than a hundred back or owe them less than a hundred. Has worked for me for many years.

[elocs]

2. I sure do wish I had a job so I could be paying some taxes to be cut. n/t

[thecrow]

13. Me, too!What about us?

[ixion]

3. sixty five whole dollars

gee...what a bonus! that's sure to get me spending again! :eyes:

[defendandprotect]

9. $65 a month is OK . . . except when you consider the huge breaks the

wealthy have gotten over decades --- !!!

I'll take it~!!

[lunatica]

4. $65 is cheap food for a week for a family of three.

It's a big chunk of my utilities bill. It's two or three weeks of gasoline in my car (at the present price). It's the bill on two cellphones.

We could all use more, of course, but I'll take it without grumbling a hell of a lot. Especially since it's a start and a very fast one at that. I was thinking we would get it next year since this year already started.

[Jeep789]

6. We seem to be the only ones happy about it

I'm really startled by the replies so far.

[Dont_Bogart_the_Pretzel]

5. Sure cut the Federal Taxes... this gives the states another reason to raise theirs.

Just my 2¢...

[Name removed]

7. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Thothmes]

18. If it is only a change in the with holdings, a lot of people may

be screwed next year. Less withholding without a corresponding reduction in the tax tables means that you still owe the same amount of tax, but less money has been witheld from your paycheck. That may mean at the end of the tax year you may wind up stroking a check to the feds to cover the delta.

[lunatica]

8. More important news from the link

President Barack Obama wants to slash America's ballooning deficit in half by 2013 by cutting spending on the Iraq war, eliminating wasteful public programs and raising taxes on the wealthy, an administration official said on Saturday.

"The deficit this administration inherited was $1.3 trillion or 9.2 percent of GDP. By 2013, the end of the president's first term, the budget cuts the deficit to $533 billion or 3.0 percent of GDP," the official said on condition of anonymity.

"Most of the savings will come from winding down the war in Iraq, increased (tax) revenue from those making more than $250,000 a year, and savings from making government work more efficiently and eliminating programs that do not work," the official said.

[cosmicdot]

11. that's from a different article

Yahoo moves links/articles a lot, I've found.

the OP link is, now:
http://news.yahoo.com/s/nm/20090221/ts_nm/us_obama_2


the deficit article is:
http://news.yahoo.com/s/nm/20090221/ts_nm/us_obama

[defendandprotect]

10. Obama should be teling Social Security to cut the unnecessary FICA . . .

which everyone is paying in order to create a SURPLUS for corrupt government

to spend on wars and tax cuts for the rich --- !!!

[Johnny Noshoes]

12. Okay so what's the reduction for a single person?

nt

[MindPilot]

20. Single people don't get a cut.

We don't have kids or support a family so we can afford to pay more.

I don't know if that is true or not, I'm just bitter and cynical. :D

[Johnny Noshoes]

21. hey u live in San Diego

if you're a Democrat in that town you have reason to be bitter and cynical - just kidding:hi:

[DesertFlower]

14. hubby makes $140,000 a year.

i doubt whether we will get a tax cut. we made too much for those rebates last year.

[prolesunited]

15. Well, you should be thankful

that you are doing so well. Congratulations.

[DesertFlower]

16. we are very thankful.

hubby has been with the company for almost 40 years. he worked hard and was rewarded. the last 4 or 5 years the company has only given raises to its top performers and that's only 1%, but it's better than nothing.

[MindPilot]

19. OK, so how about bonuses?

Yeah, I know, but hear me out. My employer is giving an early retirement incentive and it's substantial for me, into six figures.

Lump sum payouts like that are for tax purposes considered bonuses and taxes are withheld at the highest rate, 25%. Of course that is adjusted when I file in Feb 2010, but jeez I'm involuntarily giving the government (roughly) $20,000 loan for at least half the year and I won't see a dime of interest for it.

Obviously I'll get a nice refund, but that is cash I need to live on while I find something else to do for a living.

[jus_the_facts]

22. Is he gonna RAISE taxes on the OTHER *UPPER* FIVE PERCENT....

....that's the only thing that will eventually HELP anything. :eyes: