President Obama's Tax Cut for the Middle Class - The Official Math

[FrenchieCat]

Part of what I do for a living is generate payroll for various clients of mine.

Here's the result of those tax cuts for a couple making $60,000 Gross per year:

1. An employee making $2,500 semi monthly gets a tax cut of $33.35 per paychecks.
2. His wife also works for same employer, and makes the same thing, meaning an additional $33.35 cut.
3. That's $66.70 per paycheck for the household, or $133.40 per month.

So what can $133.40 each month buy?

[vadawg]

1. not a lot, but im waiting for other taxes to increase before i make my judgement

what the government giveth with one hand they taketh away with another.

[FrenchieCat]

2. I wasn't asking what the tax savings "didn't buy"......

Because it was already understood that this tax cut wouldn't pay your mortgage, find you a job, or feed your pony...

[madmom]

3. My SO and I are retired living on a fixed income. That would buy us a lot of groceries. n/t

[vadawg]

5. if you are on a retired fixed income are you getting $130

$130 a month is not a lot of money if you are a family making $120,000, i dont even notice the increase in my paycheck, but i have noticed when other taxes and prices increase.

[madmom]

15. We weren't even making $120,000 when we were working. So yes , I guess that

measly pittance wouldn't make a difference to you, but for some every little bit helps, and some people are never satisfied.

[vadawg]

17. what i am saying is that unless you make $120,000 then you are not getting that much back

if you only make $30,000 gross how much off a tax break do you get.

[madmom]

19. Umm I realize that, but the question was "what can $133.40 a month buy?" I answered..

a lot of groceries. Nothing to do with what I make or don't make. Simply answered the question!

[BlooInBloo]

4. Off topic, but your girl's shiteating grin always makes me laugh. lol!

On topic, that's one or two bills (cable, phone, elec, water) for the month, or mebbe 1/2 the groceries. Or a cc debt payment.

[peace13]

6. For some it would pay a year of property tax.

For some it would pay 6 months of property taxes and others maybe a month. $1600 could be the out of pocket for health insurance, glasses for the family, or day care for Grandma. If anyone does not want their $1600 please donate it to a charity or a friend who has lost his/her job. That is all.

[Dawgs]

7. You're correct FrenchieCat, but people need to be aware that couples have to pay some of that back.

Like everything over $800/year. At least that's what I'm getting from this article.

http://money.cnn.com/2009/03/31/pf/taxes/making_work_pay_credit/index.htm?postversion=2009033104

Joint filers whose spouses work. Each spouse will end up being paid the credit for married couples by each of their employers.

There's a twist, too. Because of the way the withholding tables were set up, each working spouse may be paid up to $600 this year -- instead of up to the $800, Mezistrano said.

In other words, the husband would receive $600 at his job and the wife $600 at her job, for a total of $1,200. Since they're only entitled to $800 total as a couple, that means they would have to pay $400 back to the IRS -- or see their refund reduced by that amount.

They also link to a IRS calculator.

Your scenario would put them behind if they didn't account for it.

[woodsprite]

9. Hmmm, hubby and I work the same place. I'll go back and do the math.

I wonder if they held back that $400.

[FrenchieCat]

11. Guess that may be correct. However, one has to also look af if there will be any increase

in the exemption dollar figure as well......

[joeglow3]

14. Dawgs is correct

Under your scenario, it would be about $67 a month.

[woodsprite]

8. If you're rather frugal, it can buy a family of 4 a wks worth of groceries

or pay for a week of full day non-infant childcare (in the DE area, at least) or a week of summer camp. It's 3-4 gas tanks full of gas depending on the vehicle type, a pair of prescription glasses, a months worth of a prescription med....

I'm sure frugal people could make it go even further. These ideas are just off the top of my head.

For the totally non-frugal person, it's 1 dinner for 2 (with drinks & tip) at The Melting Pot or Cafe Gelato or one hairstyle and dye-job at a somewhat frou-frou salon (without tip).

[DrToast]

10. $133.40 per month? That's a lot of teabags.

[JayMusgrove]

12. You Betcha!!!!

That's $1600 a year... a down payment on a car, a new living room set, summer camp for a kid, new kitchen appliances.


Lots of stimulus there if people want to use it.

[BlooInBloo]

16. *wink*

[960]

22. Where do you shop?!

:wow: and can I come with you?

[Phx_Dem]

13. Thanks for posting this because it's been really bugging me that

the media keeps saying "$12-$13" per paycheck, but when I look at my paycheck it's more like $32. Plus my husband's increased check. That's a pretty decent chunk of change every month.

Thank you, President Obama!

[islandgirl808]

18. Could someone link me to a thread or articles that explains everything?

Hi! I'm a newbie here on DU (but I've been lurking for a while now :) )

Could someone post some links that explains how this whole stimulus and bailout thing works? I'm trying really hard to better inform myself about what's going on...but it's kind of hard to do when there's so much junk to filter :(.

Thanks in advance if you do!

[Dawgs]

20. Start here.

http://money.cnn.com/2009/03/31/pf/taxes/making_work_pay_credit/index.htm?postversion=2009033104

[midnight]

21. Every little bit helps. But what I want to know is why we are

suppose to be happy with so little, and the rich are not?