Worker Tax Cut: Maybe Not so Immediate
By coffeebreak
@coffeebreak (17798)
United States
January 23, 2009 12:30pm CST
Obama raved about how he was going to give tax cut to 95% of american tax payers....well here is how it is going to work and we might not even see it for some time. And all over a measley $500-$1000. Why not just give everyone that "tax cut" as a 1040 deduction or just add it to their tax refund or like GWB did it and send out a check... at least we'd get it sooner and all at once so that we could use it for something to help out. Just adjusting take home pay is not going to do much - an extra $40 a week for about 5 months...most will only use it to catch up on a utility or credit card payment. Granted I'll take what I can get but still.... this little bit dwindled out for a long period of time, isn't going to do much to help the economy, espeically with unemployment being so high!
What do you think? Am I missing something?
http://finance.yahoo.com/banking-budgeting/article/106479/Worker-Tax-Cut-Maybe-Not-so-Immediate
4 responses
@skinnychick (6905)
• United States
23 Jan 09
When did it go to 95%? I thought it was only 60% which is still a majority and still not good. But it isn't going to be enough to stimulate the economy because it won't be enough for people who got behind on things to catch up. The stimulus checks were a better idea and people didn't seem to hate Bush when he was sending those checks out. Hmmmmm?
There is no easy way to get out of this economy but I think a Democrat in office is going to be a real problem. It seems that democratic politicians are all for the short term without looking at the long term. They are all about spending. With big spenders as the house majority, how are we ever going to get out of any of this. I'm afraid they will act and maybe help things in the short term but I think we are in dire trouble in the long term as we will be pushed further into debt by democratic spending. I guess it's all a waiting game to see what will happen but I'm afraid, I do know that.
1 person likes this
@coffeebreak (17798)
• United States
23 Jan 09
Everytime I heard Obama, he'd be saying about "95% of americans..." for his tax cut issue. I just assumed this is the tax cut that he was talking about. If he wants it to make a difference and help us... he needs to make it permanent or at least for 10 years or something like that. A total of $500 for single, $1000 for married..spread out in small increments for 5-6 months, just isn't going to do anything to help the economy. And with so many unemployed...that'll just help them eat each month. Yep, short term definately is not the way that will help the economy.
@my52cents (569)
• United States
23 Jan 09
I haven't read the details of the plan, but what bothers me is the bottom line of $825 billion. Why do these programs cost so much? If they want to spend that much money on a stimulus program, why not just send each family in the country a check for anywhere from 10,000 to 100,000 dollars and let them spend it how they see fit? That would certainly stimulate the economy fast and effectively. In my mind, the figures just don't make sense at all.
1 person likes this
@coffeebreak (17798)
• United States
23 Jan 09
I know! You hit the nail for sure! I mean, how hard is that to understand?! I mean, I am not a highly educated person, but common sense says that if you put money in the spenders hands, they will spend... "give them money and they will spend".... and since that is what is needed... why not do it!?!??! Guess that is the $64,000 question.. or I guess in this case the $825 million dollar question!
@lvhughes (545)
• United States
23 Jan 09
You have a good point. I also have a nother question are they going to add it on before or after they take out our taxes. This idea has not been thought all the way through. But there is several planes that need some work. Maybe they will stop and think soon.
1 person likes this
@coffeebreak (17798)
• United States
23 Jan 09
Stop and think? Boy, you are asking alot!!! LOL!!
I don't know the answer to your thought, but as I understand from this article, they are just going to change the structure of the payroll tax deductions so that about $40 every other pay check is not deducted for about 4-6 months, then it all goes back to how it is right now. Like if they currently take out 2% for FICA, they will only take out 1% or something to that effect. I don't know how it is now structured, but something to that effect - lower the amount taken out, then raise it back up later. Just not enough at one time to make much a difference but to maybe get caught up on cc payments and the like. And if you did save the much, save $80 a month nad when it is over, you have $500 that you can use to buy something you need or want. But most won't do that...they need the cash right now for something.
@suruchi86 (1873)
• India
18 Jun 09
I'm so sorry for coming in so late. However, I think the initial euphoria about the victory of Obama has started to wane now and things have started to look more of the same, rather than new.
@suruchi86 (1873)
• India
22 Jun 09
I mean, earlier administration was giving stimulus packages, now also it is the same. There is no significant difference in job loss rate or tax cut etc. People are still feeling the heat of financial doom without much hope. On world theater, the soldiers are still dying in Iraq, Afganistan and else where, situation of Iran, North Korea, Pakistan etc. is again the same or worse.
I might be expecting too much in too little time, but at least some movement should start in right direction, so that our hopes at least, should remain intact.
