Obama/McConnell increases taxes on individuals earning less than $20k and families under $40k

[LSdemocrat]

http://www.nytimes.com/2010/12/08/us/politics/08impact.html?_r=1&hp

"The proposal does not include an extension of Mr. Obama’s signature tax cut, the Making Work Pay credit, which provided a credit of up to $400 for individuals and $800 for families of low and moderate income. Instead, the plan creates a one-year reduction in Social Security payroll taxes, which are generally levied on the first $106,800 of income. For an individual earning $110,000, that provision would reduce payroll taxes by $2,136.

Although the $120 billion payroll tax reduction offers nearly twice the tax savings of the credit it replaces, it will nonetheless lead to higher tax bills for individuals with incomes below $20,000 and families that make less than $40,000. That is because their payroll tax savings are less than the $400 or $800 they will lose from the Making Work Pay credit.

“It will come to a few dollars a week,” said Roberton Williams, an analyst at the nonpartisan Tax Policy Center, “but it is an increase.” "

[Greyhound]

1. Oh fiddle-dee-dee, who give a fuck about those losers? n/t

:kick: & R

[neverforget]

2. Oops.

[FrenchieCat]

3. 2% of $20,000 is $400.00........

So that means if someone is making $18,000, they'll get $360 instead of $400....
$40.00 is a lot to someone that earns $18,000.....
but the credit was going to expire anyways.....

[inna]

4. surprise.

not.


thanks for the info, though.

[bluestateguy]

5. To be fair here

To those of you who want to see all tax cuts expire, the same outcome would occur for these people if we did it that way too.