Yesterday in Miami, President Obama had this to say about the Tax Day protesters:
OBAMA: We cut taxes for 95 percent of working Americans just like I promised we would on the campaign. […] So I’ve been a little amused over the last couple days where people have been having these rallies about taxes. You would think they would be saying, “Thank you!” That’s what you’d think!
Obama’s comment, of course, ignores the massive spending and deficit increases that he’s presided over, but what about this claim that he cut taxes for 95% of Americans ?
Yea, well that doesn’t really hold water either.
First of all, the tax referred to, the Making Work Pay tax credit doesn’t amount to much of anything:
Q: What are some of the tax breaks in the bill?
A: It includes Obama’s signature “Making Work Pay” tax credit for 95 percent of workers, though negotiators agreed to trim the credit to $400 a year instead of $500 — or $800 for married couples, cut from Obama’s original proposal of $1,000. It would begin showing up in most workers’ paychecks in June as an extra $13 a week in take-home pay, falling to about $8 a week next January.
Over a 52 week year, that amounts to $ 676.00 at most.
Barely enough to make a car payment for some people.
Not enough to cover rent for most.
And the mortgage ? Forget about it.
But, wait, it gets worse, the Making Work Pay Tax Credit wasn’t really a tax cut at all for millions of Americans:
WASHINGTON (AP) — Millions of Americans enjoying their small windfall from President Barack Obama’s “Making Work Pay” tax credit are in for an unpleasant surprise next spring.
The government is going to want some of that money back.
The tax credit is supposed to provide up to $400 to individuals and $800 to married couples as part of the massive economic recovery package enacted in February. Most workers started receiving the credit through small increases in their paychecks in the past month.
But new tax withholding tables issued by the IRS could cause millions of taxpayers to get hundreds of dollars more than they are entitled to under the credit, money that will have to be repaid at tax time.
At-risk taxpayers include a broad swath of the public: married couples in which both spouses work; workers with more than one job; retirees who have federal income taxes withheld from their pension payments and Social Security recipients with jobs that provide taxable income.
So $ 13 a week and you might have to pay it back anyway.
Thanks for nothing, Mr. President.