What if a president cut Americans’ income taxes by $116 billion and nobody noticed?

[sabra]

http://www.nytimes.com/2010/10/19/us/politics/19taxes.html?ref=us

From Obama, the Tax Cut Nobody Heard Of

HUNTERSVILLE, N.C. — What if a president cut Americans’ income taxes by $116 billion and nobody noticed?
Related

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 — including a reminder that a provision of the stimulus bill had cut taxes for 95 percent of working families by changing withholding rates — Mr. Paratore’s memory was jogged.

“You’re right, you’re right,” he said. “I’ll be honest with you: it was so subtle that personally, I didn’t notice it.”

Few people apparently did.

In a troubling sign for Democrats as they head into the midterm elections, their signature tax cut of the past two years, which decreased income taxes by up to $400 a year for individuals and $800 for married couples, has gone largely unnoticed.

[histeria]

1. The media hasn't been interested because big journalists are rich

They don't give a damn, for the most part. TV owners are rich too and newspaper owners who pay those journalists.

[texastoast]

2. I bloody noticed it

I got a refund (not much) after having spent several years having to pay increased amounts under the Bush "tax cut" scenario.

Thanks OBAMA!!

[fizzgig]

25. i did too

my husband and i got back much more than we expected

[eridani]

29. The "not much" part is the problem, and is why tax cuts are stupid

They don't change anyone's life. Spending the money on public works would change peoples' lives, because going from unemployed to employed DOES make a difference.

[TwilightGardener]

3. Dems need to trumpet it at every appearance in the media.

[Occulus]

4. Milquetoast. n/t

[cbdo2007]

5. All Dem's up for election should be saying this all the time....

and really point it out to people when they talk about taxes and tax cuts.

[Historic NY]

6. Idiots but when they got the checks from Bush they noticed.

[ieoeja]

7. Lowering withholding is not a tax cut.

You still end up paying the exact same tax for the year. You just pay less of it as you go along. Which means your bill/refund will be larger/smaller respectively.


But then, people are stupid. Someone told them Obama raised taxes. That is a lie. But if you deny it, they don't know whom to believe. If you tell them Obama cut taxes and point to their increased paycheck, they will believe that.

The stupid, it hurts.

[Statistical]

8. The bill lowered both the taxes paid AND the withholding.

Thus reducing BOTH amount of taxes paid AND the amount taken from each check.

The bill grants a $400 per person credit however that would only be paid at the end of the year. To provide quicker impact the bill also reduces witholding tables. Thus taxes are reduced by $400 for 95% of Americans however instead of "getting it" at tax time you get it via $33 less taxes per month.

The bill had two portions:
a) reduced witholding tables by $400 per year = $400 less federal tax witholdings taken from check
b) provided $400 per person tax credit to reduce the taxed paid by the same amount.

Everyone with income less than $250K in 2009 & 2008 got a $400 tax credit. You can check it on your 1040 - line 63 (it is there).
The withholding decrease made paychecks larger (roughly $33 per month). The credit ensured that you got to keep that money too.

[BeFree]

9. That's right

The taxes were lowered. Hope that previous poster (ieoja?) responds back with the acknowledgment that it was so f'n wrong it made my head spin.

[Name removed]

10. Deleted sub-thread

Sub-thread removed by moderator. Click here to review the message board rules.

[ieoeja]

18. Thank you. I had not heard of this. (nt)

[closeupready]

13. Who pays for your health insurance?

?

[ieoeja]

19. Me and my employer. Why? (nt)

[closeupready]

31. Who would pay for it if you were unemployed?

?

[ieoeja]

32. Me, I suppose. Why? (nt)

[closeupready]

33. You certainly would pay for it, you would have no option, since that's a tax Obama signed,

and called a "mandate" or user fee or whatever.

[ieoeja]

34. I suppose so. But I fail to see how this relates to the topic. (nt)

[closeupready]

35. Taxes were lowered; taxes have also been raised.

The story posted in the first post fails to account not only for the fact that taxes have been raised on the middle class, but also in DIRECT CONTRADICTION TO his solemn campaign promise that if you make under $250k per year, your taxes will not rise even one penny.

[ieoeja]

37. It is called compromise.

Obama wanted universal healthcare paid by taxes on those making over $250k per year.

Conservative majority in the Senate wanted no universal healthcare.

Compromise was universal healthcare paid by taxes on *most* beginning 2014.


Now...

Obama still wants a tax increase on those making over $250k per year to makeup the deficit created by staving off an economic depression.

Conservative majority in the Senate wants no tax increase (as with healthcare, they don't want to do anything about the deficit either).

If I was a betting man, I would put my money on a tax increase for everyone.



*most* excludes military veterans and those on Medicaid. Plus subsidies for the working poor and Medicare for the elderly.

[WinkyDink]

11. Then here are this week's TV marching orders: MENTION THE TAX CHANGES, NO MATTER THE TOPIC AT HAND.

See how easy? It's what Republicans do, isn't it?

[cbdo2007]

14. This is where all the Dems and the media drop the ball.

Why don't some of them start calling the Repubes out on the "Lower taxes" thing?? I have to figure that most of them either don't know or don't care, but that would probably be the easiest way to paint the Tea Party and Repubes as out of touch hypocrites.

Geez, even here on DU, this article should have 500 Recs and it only has....13?? WTF??!?!? This article says that 9 out of 10 people think don't know that Obama lowered their taxes, let's Rec the sh*t out of this thing and get it on the greatest page and into people's attention.

[Statistical]

15. The Dems always seem to FAIL big when it comes to getting out the message.

Obama cut taxes on 95% of Americans. Period.
However the Democrats weren't able to control that message.
Now 9 out of 10 think he raised taxes.



The democrats "get out the message" campaign.

[Zephie]

12. K&R

[Johonny]

16. My older brother told me last year to save money to pay the extra Obama taxes

Both my younger brother and I laughed and told him he was in for a surprise come tax time. My older brother was completely surprised to find his taxes were cut. It's not like he's a freeper or anything. The media somehow forget to tell the American people their taxes got cut and somehow managed to get the complete opposite message out. AMAZING.

[Scurrilous]

17. K & R

:thumbsup:

[SoCalDem]

20. $400 divided by 52 = $7.69

and if it was a reduction of taxes, most people's take-home only changed a little bit..not that noticeable.

In order to get the press (and people, in general) interested it has to be a gimmicky cut...with stock film of the printing presses churning out checks...like the Bush-rebates.

Every individual's tax-issues are different, as are their deductions, so it's hard to show concrete "evidence" of the tax cut..Of course when it involves super-rich,m the amounts saved are impressive, so they get reported on.

[Statistical]

23. Your math is off by logic is sound.

Obama could have pushed for a single large check, or single larger rebate at tax time but it made more sense to increase paychecks instead. By changing withholding it saved the govt the expense of sending physical checks, avoided the issue of fraud, and ensured the money came starting w/ very first paycheck.

The $400 credit worked out to:
$7.69 per paycheck (paid once per week)
$15.38 per paycheck (paid every 2 weeks)
$16.67 per paycheck (paid twice a month)
$33.33 per paycheck (paid once a month)

It was the most effective method to distribute large amount of money but since it wasn't a gimmick 9 out of 10 people are convinced their taxes went up.

It says a lot about America.

[cbdo2007]

24. With Bush, those checks were used more as a bribe....

"If I'm elected President I'll send everyone a check for $800, no questions asked..."

sounds a lot better than, "to rescue the economy, we'll give everyone $7.69 each week added right onto their already small paycheck. Your welcome."

[Historic NY]

30. Exactly and they came around election time...people forget they were bought.

[SoCalDem]

27. oops/.. did not clear the calculator..

I fixed it Thanks
I got an A in 5th grade math..honest:rofl:

[the redcoat]

21. Just more proof that there are no real journalists in the MSM

A $116 billion cut is not petty partisan arguing. It is a fact which requires no opinion, only a question: "Did they cut taxes?" and the answer "Yes."

Clearly the fact that no one knew about this is just more proof that pundit opinions are more important than fact.

[hedgehog]

22. I had such a large tax cut that I went over my computer

prepared 1040 very carefully to ensure that there wasn't a gigantic mistake. When I compared the 2009 1040 to the 2008 1040, I found the tax cuts.

Even then, I held my breath until the IRS sent the refund check!

[SoCalDem]

28. same here.. but this year we will pay through the nose

my husband is still working, got a large bonus & started collecting SS..:scared: It could be grim ..

[old mark]

26. Look, if the 'publicans had cut taxes for the working people and middle class, we would

be hearing about it all day every day for a decade. Why can't the Democrats understand that they need to frequently remind people what has been done for their benefit, and that the 'publicans opposed every bit of it. Can the DNC be so naieve or brainless as to think the people will just support them without any advertising of the GOOD THINGS they have done?

You know that in a few months the GOP will be taking credit for all of it and the DNC will be scratching their heads wondering what happened.

Wake up, DC!


mark

[AndrewP]

36. I think it doesn't count to Teabag types, because the President is black n/t