I had a comment, from D, on my last entry about filing taxes now and whether a tax refund of $1K that has yet to be passed by congress would effect our refunds.
I found an answer. The tax cuts would come in the form of reductions in the amount of social security tax that is withheld from paychecks. For those of us who might be able to file our taxes any day, this will not impact our refunds. No reason to delay.
Here's a link to the
A New Stimulus - Refunds?
January 22nd, 2009 at 05:29 pm
January 22nd, 2009 at 05:38 pm 1232645927
Besides, most of that money will be spent in cheap stores like Wallmart on chinese goods.
Giving money to the states for infrastructure projects at least has some longer-term benefits that future generations (who will be saddled with debt for all these handouts) would get at least some benefit from.
January 22nd, 2009 at 05:48 pm 1232646505
January 22nd, 2009 at 06:07 pm 1232647629
When I first heard it all I Thought was, "Obama doesn't understand that the only payroll tax that individuals pay is social security." (Most payroll taxes are funded by employers - Unemployment for example). HE obviously doesn't intend to cut social security funding and so his rhetoric is flawed. Of course, neither candidate seemed to have much grasp of tax law. They said a lot of things that made no sense. If this stimulus comes through it will come from elsewhere. There is a reason the other stimuluses were administrated by the IRS and through the income tax system. FAR simpler. To mess with payroll taxes is a very expensive endeavor (new forms, educating employers on the changes, hiring accountants to figure it all out, etc., etc.).
He could have simply meant that it will come through lowering income tax withholding from paychecks. But that is also a far more complicated way to do it. But I have thought that was what he really meant. Though withholding is not a "payroll tax" in my accounting jargon.
January 29th, 2009 at 08:11 pm 1233259861