A.K.A. Making Work Pay Tax Credit (a.k.a. 2% Payroll Tax Holiday*)

– by: Larry Walker, Jr. –

Bundled in the 2009 economic stimulus plan was the $400 ($800 for couples) Making Work Pay tax credit which provided a tax credit in 2009 and 2010 equal to 6.2 percent of earned income of up to $6,450 for individual filers and $12,900 for couples. The tax credit took effect in July 2009. Workers who have taxes withheld from their paychecks have seen a decrease in the federal income taxes withheld from each paycheck by about $15 per paycheck every two weeks ($30 for couples). The credit phases out by two percent of any income over $150,000 for couples and $75,000 for others. Couples earning more than $190,000 and individuals earning more than $95,000 do not benefit from the credit.

Washington elitists seem to think that handing an American a $7.50 per week bonus ($15.00 for couples) out of their broke treasury will actually help somebody. Yeah, maybe in 1929, but $30 to $60 per month won’t even cover room and board in 2010. All it really amounts to is waste and abuse. It’s a waste of taxpayer resources as it helps no one, and abuse because all it really does is add to the national debt. This is just another fine example of how the crooks of D.C. have built themselves a monumental national debt of $13.8 trillion. Politicians should learn how to say the word “No”. Come on say it with me, “No”.

According to some estimates, if made permanent, the Making Work Pay tax credit will cost the U.S. government an estimated $640 billion through 2018. Any idiot who would vote for something that cost so much and helps no one should be targeted and fired in 2012. If Obama continues to push this, he’s one and done. Hopefully he will, because I will enjoy listening to another year of complaints from his former base.

*Addendum: What a disaster. The proposed 2.0% payroll tax cut will amount to about the same thing, a $15 per week pay increase for a $40,000 per year wage earner, or $27 per week for a family making $70,000, paid for by additional deficit financing. Did anyone get the memo entitled, “Stop Spending“? The package which includes extending the college tuition tax credit and other breaks for middle-class families that were due to expire on Dec. 31, would add more than $700 billion to the rising national debt, said congressional sources who were briefed on the package.

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“You cannot help the poor by destroying the rich…

You cannot strengthen the weak by weakening the strong…

You cannot bring about prosperity by discouraging thrift…

You cannot lift the wage earner up by pulling the wage payer down…

You cannot further the brotherhood of man by inciting class hatred…

You cannot build character and courage by taking away people’s initiative and independence…

You cannot help people permanently by doing for them, what they could and should do for themselves…”

~ Abraham Lincoln

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Tax Policy Center – Tax Stimulus Report Card

http://romans828pslm23.blogspot.com/2010/12/friends-e-mail.html?spref=tw