The government giveth, and the government take away.
As I watched Vice President Biden bragging on Larry King Live tonight, I started getting furious! Biden bragged and gave specific examples and even approximate amounts of how much money people were saving from the payroll stimulus package that was implemented last April 1. He even claimed to know what us common folk have been spending our new found money on; things like gasoline and food, and how it's helped our economy, blah blah blah. All the while he is grinning like a opossum and looking and sounding so proud.
Well my friends, that is no longer true what he said and the amounts he gave. Either he is ignorant and does not know that our federal with holding tax rates went back up as of the first of this year or he is deliberately not saying it to make it sound like our taxes did not get raised.
Think of it like this: a store has a certain retail price on an item and wants to trick you in to believing that it is on sale now. But what they really did was raise the price and then the so-called sale price is actually what the original price was before the sale. That's a pretty sneaky trick isn't it? That of course, would be something that store would not want you to know.
And the fact that payroll taxes have gone up already is also something I believe our government does not want you to know. It's true the rate did not go up to the higher amount it was before the payroll stimulus last April, but it did go up. How do I know? I know, because payroll is one of my job duties. At the end of this blog post, a copy of the tax chart (for weekly payroll) effective April 1, 2009, when we all started clearing a little dab more on our pay checks is shown, as well as the new tax chart for 2010 for your comparison. Notice there are two sets of with holding rates--one for single people and one for married people.
You may also notice how much more (almost double) that a single employee must pay in federal taxes as compared to the married employee. Does that sound fair to you?
I wonder, was it another broken promise by the Obama administration, when they said that our taxes would not got up? If I remember correctly, first Obama said you would pay more only if you earned $250,000 a year or more, and then several times that figure changed in various speeches, depending on who was speaking and at what event and time. We all bought it, hook, line and sinker though. Surprise! And Happy f'ing New Year. What do you bet that our taxes will go up again in 2011 and be right back at the same rate, if not higher? And what will happen in 2012? I predict that the federal with holding tax will go up more and more each year!
Please forgive me for if I come across sounding like Sarah Palin with her snarky little remarks. Believe me, that is not my intention. I do however want the truth to be known that yes our Federal With holding taxes went down last April 1st. But guess what they don't want you to know? Those taxes were raised as of January 2010. That is a tax increase.
It was a great day to do payroll, when I wrote "Payroll Stimulus kicks in! You get a raise!" last April 6th. And that blog post went on to receive more views from google search than any of my other posts. I hope just as many readers will find this in their search engines and learn the truth.
I'm sure we can all understand a possible need for a small tax increase, but Biden had no right to go on international television and gloat and brag about something that is no longer true.
Here is the With holding table as of April 1, 2009, when the taxes went down. Under neath it is the NEW With holding table as of January 1, 2010, so you can compare for your self. The scans are small, but if you click them, they will become full screen.
If you are paid weekly, you can also look closely at your pay stub and these charts and see if the correct amount of federal tax is being with held. You can find additional tables (such as monthly, semi-monthly, etc) at www.irs.gov. However, you will not find the previous lower rates for comparison on the that site.