Obama Tax Plan to Take Effect April 1

[bandycpa]

I don't know what I'm going to do with $13 per week. Suddenly, I feel economically stimulated.

The sad part is, I've already had clients asking if they should go ahead and reduce their withholdings now so they could implement Obama's tax plan. It appears the "gimme" phase of the package has begun.


Bandy


http://www.foxnews.com/politics/elections/2009/02/21/obama-tax-cuts-felt-april/100days/

Treasury Directs Employers to Begin Withholding Taxes
Most workers are to see about a $13 per week increase in their take-home pay.

AP

Saturday, February 21, 2009


The notoriously slow Congress passed the $787 billion economic stimulus package in a matter of weeks. President Obama signed it into law less than one month into his presidency.

So, just how soon will Americans start reaping the benefits of tax cuts in it?

By April 1, according to the president.

"Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans," Obama said Saturday in his weekly radio and Internet address.

He said the Treasury Department has begun directing employers to reduce the amount of taxes withheld from people's paychecks in accordance with the new law, and that in six weeks, a typical family will start taking home at least $65 more every month.

Obama says his signature "Making Work Pay" tax break will affect 95 percent of working families.

The $400 credit for individuals is to be doled out through the rest of the year. Couples are slated to get up to $800. Most workers are to see about a $13 per week increase in their take-home pay. In 2010, the credit would be about $7.70 a week, if it is spread over the entire year.

People who do not earn enough money to owe income taxes are eligible for the credit, an attempt to offset the payroll taxes they pay.

Obama's expensive and ambitious package of federal spending and tax cuts is designed to revive the economy and save or create 3.5 million or more jobs. It will inject a sudden boost of cash into transportation, education, energy and health care, while aiming to help recession victims through tax cuts, extended unemployment benefits and short-term health insurance assistance. It also will add to a rapidly growing national debt.

The president signed the measure into law Tuesday.

In his weekly address, Obama said he was grateful to Congress, governors, mayors and everyday people who supported the measure.

Still, he added: "It is only a first step on the road to economic recovery. And we cannot fail to complete the journey." He said the country also must stem foreclosures, repair the banking system, get credit flowing again and revamp financial industry regulations.

And, even as he promoted the record-breaking spending plan, he called for doing what's necessary to control "exploding" deficits as the economy begins to improve.

Obama is holding a bipartisan "fiscal responsibility summit" at the White House on Monday to talk about ways to control the trillion-dollar budget deficit. The next day, he is to address a joint session of Congress, a speech expected to focus heavily on the economy. On Thursday, Obama will send a budget request to Congress "that's sober in its assessments, honest in its accounting, and lays out in detail my strategy for investing in what we need, cutting what we don't and restoring fiscal discipline."

Republicans are certain to hold him to that.

In the GOP's weekly address, Rep. Dave Camp of Michigan, the top Republican on the House Ways and Means Committee, said his party wants to work with Obama to solve the country's economic problems "in a responsible way that does not burden our children and grandchildren with a mountain of debt."

"We can't borrow and spend our way back to prosperity," Camp said. "If he is serious about dealing with the tough issues and getting spending under control, his budget will show it."

[Dozer523]

Bandycpa, you are dead on. It is so small at the individual level no one will notice it. That might be the best thing about it because EVERY body gets it. And there are lots of EVERYbodys.
In an earlier thread, it was discussed what would happen if the tax cut was big, significant? noticable, at least. Say -- another stimuleous dump of a few thousand dollars. I, for one, (and I don't think I'd be alone) would throw mine at my exsisting bills. Helps me! but not my neighbor who loses his job because I'm not buying what he makes.
$13 bucks a week is good for a couple of cups of regular coffee (I'm not stimulating the economy to the tune of a double-shot, soy, skinny, extra whip, hold the chocklet syrup Mocha Frapachino -- I HAVE to draw the line somewhere!); a happy meal; and a basic carwash. So, maybe, if we all hit Starbucks, Mickey Dee's and the Chevron, we can (at least) keep the High Schoolers employed. Then their parents won't be so worried.
Or (Maybe) I'll start paying my kids allowance again. (OMG! :eek:I laid off my kids! I can re-hire them!)
We can beat this thing on $13 per day X 160,000,000. *

*I made that number up, sorry. But there have to be LOTs of taxpayers. A number NMAP, if you please.

[echoes]

[I]I "Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans," Obama said Saturday in his weekly radio and Internet address.

Think I am going to be sick!

Honestly, if Americans buy in to this load of crap, then they get what they deserve, IMHO.

Here is a thought...If the current administration thinks American citizens will swollow this sh*t, then I am curious what else "they" have in store for "us?":mad::mad::mad:

Holly

[bandycpa]

It is so small at the individual level no one will notice it. That might be the best thing about it because EVERY body gets it.

All this hype that the Obama Administration has put into this has created an expectation of real assistance through this tax plan. Like you said, if it was significant, we could do things with the so-called stimulus that would hopefully allow people to get back on their economic feet.

But $13 per week per worker?

Like Echoes said, all that does is allow Obama to say "I did something, and I did it faster than any other President in history". Kind of reminds me of the Jeff Foxworthy routine where he describes the difference in men and women doing things around the house. The husband cleans out the ashtray, and then crows about it to his wife, who is busy resealing the driveway. All Obama has done is empty an ashtray, and I'm not sure that we even smoke!

Bandy

[echoes]

All Obama has done is empty an ashtray, and I'm not sure that we even smoke!

Bandy

Bandy,

Very well said, IMHO!

just my .02

Holly:boohoo

[Saoirse]

If I remember correctly, when Ronald Reagan became president our economy was much worse than it is now. Didn't he do the complete opposite? He proposed and thankfully, Congress passed sharp cuts in the tax rate, it stimulated the economy with growth and employment and federal revenues increased.
I have often heard, especially during the last days of the campaign and after Barry was elected, a comparison of him to Pres. Reagan not just Abraham Lincoln. But I hardly see the comparison and as for the April 1st date, I find it a bit ironic...because this really is just a joke (IMO)

[Dozer523]

All this hype that the Obama Administration has put into this has created an expectation of real assistance through this tax plan. Like you said, if it was significant, we could do things with the so-called stimulus that would hopefully allow people to get back on their economic feet.
Like what?:)
My execution of "the plan" puts three kids back on the payroll. !)

[Dozer523]

If I remember correctly, when Ronald Reagan became president our economy was much worse than it is now. Didn't he do the complete opposite? He proposed and thankfully, Congress passed sharp cuts in the tax rate, it stimulated the economy with growth and employment and federal revenues increased.
I have often heard, especially during the last days of the campaign and after Barry was elected, a comparison of him to Pres. Reagan not just Abraham Lincoln. But I hardly see the comparison and as for the April 1st date, I find it a bit ironic...because this really is just a joke (IMO)
I don't think it was as bad in the same ways. I doubt it is fair to compare -- I defer to NMAP. But, do you remember what happened to the money supply and Interest Rates? Mortgages were at 14% and people were racing to get into them, because there seemed to be no end in sight. I just refi'd (there is too money out there -- if your credit report walks on water) to 4.47. That ought to be unbelievable. I have three times the mortgage for nearly tthe same payment. It did work but tough medicine. The comparision to President Reagan? I think they are comparing their hair.

[bandycpa]

Like what?:)

For starters, and I think you had alluded to it earlier, paying off bills and other debt. To me, the biggest crunch we have is not so much the mortgage problem, but the unsecured credit problem that a lot of us face. Credit cards with rates upwards of 20%, coupled with a persons inability to hold off until they can actually afford the purchase, have created a situation where people either pay off perpetual interest. Worse yet, people simply stop paying on the cards altogether, and screw up their credit for a very long time.

Second, if we're giving out stimulus money, let's use it to pay off people's mortgages. Mortgages take up approximately 30% of a person's take home pay per month. Imagine what we could do with that 30% if it was freed up from a monthly mortgage obligation.

Third, I'd like to see those monies put away into people's retirement funds. Granted, that doesn't stimulate the economy, but it would set aside money for retirement that people are not setting aside now on their own. Over 30 years, a retiree could have a substantial sum of money set aside that started with a "stimulus-given" nest egg that they weren't even aware of (as far as coming out of their own pocket).

Fourth, and this one hits close to home, we could use it in some form or fashion to help make health insurance / medical costs more affordable. I don't know how we could do it, but it seems that there should be some way to keep costs (and, on the flip side, billings) down so that health care could be more affordable.

Ultimately, though, I think the stimulus / tax package isn't necessary at all. The four things I listed above are nice in a theoretical bubble, but three of the four above are dependent on a change in human nature. The stimulus / tax package will not change human nature.

In the first scenario, if you don't buy things until you can afford them, you don't have a credit card bill that piles up unearthly amounts of interest. If the government pays off my credit card bill, am I apt to cut up the card? Or would I just go spend more credit on things I don't need.

In the second case, I decided when I bought the house that I could afford "x" amount. What if I decided that a smaller house would do just as well? I had the control to determine how much I would be paying a month for my mortgage, whether it took up 10%, 20% or 30% of my monthly check, when I decided I wanted a $100,000 house instead of a $75,000 one.

In the third case (and in conjunction with the other two above scenarios), I have to discipline myself to contribute to (and manage) my own retirement fund. If the government gives me retirement money, and I want that big screen tv, will I pull the money out of that retirement account so I can watch NCIS in HD?

In my opinion, even with a $100,000 stimulus payment per person, we would still be in deep water within 5 years of the payment if human nature didn't change to take advantage of the fresh start we would gain from such a program. $13? I don't think it'll change any behavior at all.

Did I just argue for and against the stimulus in the same post? :D


Bandy

[armymom1228]

13 bucks... heck that won't even buy me a bottle of good Irish Whisky so I can remain catatonic. :eek:

[armymom1228]

Like what?:)
My execution of "the plan" puts three kids back on the payroll. !)

Mine is to look at 'retiring' in Belize and just walking away. For single white taxpayers like me, there is no real stimulus. House and car long paid for.
kids grown and on their own. Neither needs help from me, thank heavens.
I would be 3 hrs from mom on a plane.. I am about that now.

All I see is my taxes, in the long run going up. I am tired of feeling like a yo-yo on a string, at the whim of politicians..
a.m.

[Gypsy]

Did I just argue for and against the stimulus in the same post? :D


Bandy


Are you a Gemini? :D


Wow...a whole $13.00. Yeah, that'll help me to stimulate the economy.

Not.

[bandycpa]

Are you a Gemini? :D



Gypsy,

You hit it right on the head. How'd you know? :D

Bandy

[Sten]

If you don't want the 13 bucks I will be glad to take it.

[Monsoon65]

A whole $13. I think I'll go to the movies. By myself. :D

[AngelsSix]

How I would spend my 13 bucks:

A box of 9mm??:D

[Gypsy]

How'd you know? :D

Bandy

Takes one to know one. I drive people crazy when I argue both sides. :D


Sten, you're right of course. That $13.00 per week is better in my pocket than in the government's. I suppose I thought the administration might actually do something on a bit of a larger scale for those of us who are actually working hard not to overextend ourselves. Silly of me.

[Dozer523]

13 bucks... heck that won't even buy me a bottle of good Irish Whisky so I can remain catatonic. :eek: You could save up for a couple of weeks!;)

[Richard]

Shortly after class, an economics student approaches his economics professor and says, "I don't understand this stimulus bill. Can you explain it to me?"

The professor replied, "I don't have any time to explain it at my office, but if you come over to my house on Saturday and help me with my weekend project, I'll be glad to explain it to you." The student agreed.

At the agreed-upon time, the student showed up at the professor's house. The professor stated that the weekend project involved his backyard pool. They both went out back to the pool, and the professor handed the student a bucket. Demonstrating with his own bucket, the professor said, "First, go over to the deep end, and fill your bucket with as much water as you can." The student did as he was instructed.

The professor then continued, "Follow me over to the shallow end, and then dump all the water from your bucket into it." The student was naturally confused, but did as he was told.

The professor then explained they were going to do this many more times, and began walking back to the deep end of the pool.

The confused student asked, "Excuse me, but why are we doing this?"

The professor matter-of-factly stated that he was trying to make the shallow end much deeper.

The student didn't think the economics professor was serious, but figured that he would find out the real story soon enough.

However, after the 6th trip between the shallow end and the deep end, the student began to become worried that his economics professor had gone mad. The student finally replied, "All we're doing is wasting valuable time and effort on unproductive pursuits. Even worse, when this process is all over, everything will be at the same level it was before, so all you'll really have accomplished is the destruction of what could have been truly productive action!"

The professor put down his bucket and replied with a smile, "Congratulations. You now understand the stimulus bill."

[Dozer523]

Richard, I'm GTG on the Stimulous plan. Thanks.:D
Now 'splain the TARP to me. Did we fill our buckets from the shallow end of our pool and then pour it into the deep end of the pools in the gated communities across town? :p

[armymom1228]

You could save up for a couple of weeks!;)

That would mean I would have to get sober for a week or two..
mmmmm NO... that would mean compromising my standards.

My grandfather taught me that a small amount of the best was far
superior to lots of crappy.. I am spoiled I prefer the best. :cool:

OTOH, if you are buying I will not quibble.. :D

[Richard]

Now 'splain the TARP to me.

Simplest terms? JMHO--TARP = the new TARFU! Think how much $$ we'll save by keeping our tires properly inflated (to match our egos) and sending one less letter in our IMs. :p

Richard's $.02 :munchin

[Box]

how incredibly appropriate that it takes effect on April fools day...

...the joke is on YOU my fellow americans

[Ret10Echo]

Obama pledges to cut deficit in half
President Barack Obama has vowed to cut the country's budget deficit in half by the end of his first term. Obama laid out the guiding principle of his budget policy at a White House conference. He said he believes the time has come for "a frank conversation" about the problem and said the deficit, projected to total $1.3 trillion this year, must be brought under control.

The President said that he's committed to going through the budget to "root out waste and inefficiency." He's asked each member of his cabinet to do so as well.

Could this mean Line-Item VETO??

"Take one example -- the Department of Agriculture has moved some of its training programs online, saving an estimated $1.3 million a year," he added. "They're modernizing their financial management system, saving an estimated $17.5 million. They're saving tens of thousands of dollars by cutting back on conferences and travel and other small expenses that add up over time."

Kinda like Congressional "Fact Finding" tours and Junkets to real dumps like the Carribean and Hawaii....for vacation on the taxpayer's dime?

He also said that he wants to reinstate a pay-as-you-go policy on federal spending programs, get rid of programs that do not work, end tax breaks for companies that ship jobs overseas, and ending no-bid contracts in Iraq.

Double edged sword...now we have the opportunity to overpay for a sub-par product or service


"The pay-go approach is based on a very simple concept: You don't spend what you don't have," he said.

SWEET JUMPIN JIMMINY...give this guy Al-Gores Nobel prize...!


"So if we want to spend, we'll need to find somewhere else to cut. This is the rule that families across this country follow every single day -- and there's no reason why their government shouldn't do the same."

Mr President, there are about 535 people on the other end of Pennsylvania Ave that lack the reason of which you speak.

Calling for fiscal restraint even while federal spending soars, Obama summoned allies, adversaries and outside experts to a White House summit Monday to address skyrocketing budget deficits and announced $15 billion in Medicaid money to states from his $787 billion economic stimulus package.


"As we take the steps that we must to get through the crisis we're in now, we will not lose sight of the long-term," Vice President Joe Biden said as he opened the event. Obama's No. 2 promised that the administration would be frank with the public about budget challenges, though he also said there was a need to reform the nation's health care system and wean the United States off heavy reliance on foreign oil.

The summit came one week after the president signed into law the gargantuan stimulus measure designed to stop the country's economic free fall and, ultimately, reverse the recession now months into its second year. The new law is certain to add to this fiscal year's deficit, which the administration projects will be $1.5 trillion.

So we are obviously taking the Manana approach

Obama led the summit to address the nation's future financial health after meeting with Republican and Democratic governors who are poised to benefit from his unprecedented emergency spending-and-tax cut measure.

[Ret10Echo]

I am AMAZED by these jokers....:eek: This is the sports-equivalent of spitting in the opposing players face....

WASHINGTON – House Democrats unveiled a $410 billion spending bill on Monday to keep the government running through the end of the fiscal year, setting up the second political struggle over federal funds in less than a month with Republicans.

The measure includes thousands of earmarks, the pet projects favored by lawmakers but often criticized by the public in opinion polls. There was no official total of the bill's earmarks, which accounted for at least $3.8 billion.
The legislation, which includes an increase of roughly 8 percent over spending in the last fiscal year, is expected to clear the House later in the week.

Democrats defended the spending increases, saying they were needed to make up for cuts enacted in recent years or proposed a year ago by then-President George W. Bush in health, education, energy and other programs.

Republicans countered that the spending in the bill far outpaced inflation, and amounted to much higher increases when combined with spending in the stimulus legislation that President Barack Obama signed last week. In a letter to top Democratic leaders, the GOP leadership called for a spending freeze, a step they said would point toward a "new standard of fiscal discipline."

Either way, the bill advanced less than one week after Obama signed the $787 billion economic stimulus bill that all Republicans in Congress opposed except for three moderate GOP senators.

Apart from spending, the legislation provides Democrats in Congress and Obama an opportunity to reverse Bush-era policy on selected issues.

It loosens restrictions on travel to Cuba, as well as the sale of food and medicine to the communist island-nation.

In another change, the legislation bans Mexican-licensed trucks from operating outside commercial zones along the border with the United States. The Teamsters Union, which supported Obama's election last year, hailed the move.

The Bush administration backed a pilot program to permit up to 500 trucks from 100 Mexican motor carriers access to U.S. roads.

The legislation covers programs for numerous Cabinet-level and other agencies, and takes the place of regular annual spending bills that did not pass last year as a result of a deadlock between the Bush administration and the Democratic-controlled Congress.

Congressional expenses are included. The bill provides $500,000 for what is described as a Senate "pilot program" that will defray the cost of mass mail postcards to households notifying them of a nearby town meeting to be attended by any senator.

[LibraryLady]

... a change in human nature. The stimulus / tax package will not change human nature...

Quoted for emphasis.

Our economic structure will not change until the majority of American society changes their attitude on spending/credit/savings. THEN we'll have to work ourselves out of the Federal deficit quagmire.

LL

[Blitzzz (RIP)]

The Lemmings would have us believe that Obama is able to emulate Reagan's tax cuts in his own way. The conservatives criticize him for not being competent or haveing the capacity to lead, etc. My take is that he has studied Ronald Reagan's dealings with the Soviets and bringing down the Union by forcing them to out spend there sources. He broke them financially.
Well guess what, I believe this Muslim believer is going to single handedly bring down the great devil (US) by financially breaking us. He wants to destroy this nation for his Muslin Brotherhood and still be left in charge of the new Muslin Nation.

Any comments welcome, particularlly from 18Fs, 18Zs 11Fs. Do the studies. Blitzzz