Now you see it, now you don't

A lot of people in this country were looking forward to even the miniscule tax "cut" they originally were going to receive out of this $800 billion "stimulus" bill. Remember the $500 (single) and $1,000 (married) tax rebate checks the government was going to mail out as soon as this bill was signed into law?

Well, not only did those figures drop to $400 and $800 in the final bill, but guess what? There aren't going to be any checks.

What the Libs decided to do (yes, the Libs, because Republicans were not involved in crafting the final bill that will be sent to the White House) is spread out that money over the course of a year in the form of a reduction in the taxes that are taken out of your paycheck.

The figure I've seen everywhere refers to this equaling $13 more per week in your paycheck ... although that math doesn't exactly add up. But let's just go with that, shall we?

Now, I'm sure a lot of folks will say, "well, that's better than nothing."

Except that it is nothing.

Here's the scam the Democrats are perpetrating:

Your withholding tax rate is going to be altered so that you have $13 less taken out of your pay each week. Over the course of a year, that equals $676. Follow me? Sounds good, right?

But at the end of the year, when you do your tax return (unlike certain members of Obama's administration), you get to the end and have to go to the Tax Table to figure out what you owe on what you made the previous year.

Let's say in 2008, after all your deductions, you made $50,000. If you're single, your tax on that amount would be $8,850. You balance that against all the withholding tax that had been taken out all year. Let's say that is $9,676. Your refund for the year then would be $826.

But what the government now is going to do is give you a tax "break" in the form of lower withholding. We're back to the $13 per week. So at the end of the year, after deductions, you still have made $50,000. Your tax is still $8,850. Only now, your withholding for the year is $9,000.

And your refund drops to $150.

So class, let's review:

Before this "stimulus" bill that we so desperately need with its "tax cut for hard-working lower- and middle-class Americans", we received an $826 refund on our taxes at the end of the year.

Now, with the "stimulus" bill that we so desperately need with its "tax cut for hard-working lower- and middle-class Americans", we're going to get to keep $13 per week more in our paychecks, which at the end of the year equals $676.

BUT, our refund from the IRS when we do our taxes (unlike certain members of Obama's administration) is going to be $150 instead of $826 ... or $676 less.

They giveth. And then they taketh away.

Your net gain in this $800 billion "stimulus" bill that we so desperately need?

ZERO.

(Imported from Feb. 12, 2009)