Congress Tinkers with Withholding Tax Tables for 2010

Congress Tinkers with Withholding Tax Tables for 2010

biggovernment.com...

Recently, retired military have received e-mail messages notifying them of a withholding tax increase. The email states:

NO ANNUAL COST OF LIVING ADJUSTMENT (COLA) WILL BE ADDED TO MILITARY RETIRED PAY IN 2010.

DUE TO RECENT LEGISLATION YOUR FEDERAL WITHHOLDING TAX HAS CHANGED.

After much investigating and several discussions with the IRS, it appears the Democrats have played a “cash-flow trick” on working Americans and are taking more out of American’s paychecks across the board–all the while touting the Making Work Pay tax credit.

I looked to see if this was already posted, all I get is error, anyway,

There is much going on with our government that isn't being reported on this forum, sorry I am getting impatient.

[edit on 013131p://bThursday2010 by Stormdancer777]

2009 Biweekly, Single, Payroll Period, after subtracting withholding allowances

Not over $276: $0 in taxes
Over $276 – $400: 10% payroll tax
Over $400 – $1,392: $12.40 plus 15% of excess over $400
Over $1,392 – $2,559: $161.20 plus 25% of excess over $1,392
Over $2,559 – $6,677: $452.95 plus 28% of excess over $2,559 (Notice the large salary range)
Over $6,677 – $14,423: $1,605.99 plus 33% of excess over $6,677
$14,423: pays $4,162.17 plus 35% of excess over $14,423

Let’s look at the new numbers for 2010 Biweekly, Single, Payroll Period, after subtracting withholding allowances

Not over $233: $0 in taxes
Over $233 – $401: 10% payroll tax
Over $401 – $1,387: $16.80 plus 15% of excess over $401
Over $1,387 – $2,604: $164.70 plus 25% of excess over $1,387
Over $2,604 – $3,248: $468.95 plus 27% of excess over $2,604 (Notice the large salary range is gone)
Over $3,248 – $3,373: $642.83 plus 30% of excess over $3,248 (Notice the substantial increase and 30% tax rate on these wages)
Over $3,373 – $6,688: $680.33 plus 28% of excess over $3,373
$14,450: pays $4,169.99 plus 35% of excess over $14,450

These patterns of additional withholding can be seen throughout the new charts for the 2010 tax year for single and married persons. It appears that everyone earning a paycheck is affected, not just retired military; social security payments will remain the same.

Why would the Democrats tinker with the withholding taxes and, ultimately, cause more stress on Americans and businesses? Why would the Democrats create more wage categories and deliberately target the middle class with a huge withholding increase and 30% tax rate? Are the Democrats trying to backfill the deficits they created in 2009? Because taxpayers will have overpaid the federal government payroll taxes, will they be eligible to get back this additional withholding money in a tax refund when filing in 2011? Do taxpayers in the hardest-hit wage categories even realize that their paychecks are going to be significantly lower, unless they make the necessary changes?

reply to post by Stormdancer777


I like it when you get impatient,S&F.
Keep 'em comin'!!

Originally posted by genius/idoit
reply to post by Stormdancer777

 

I like it when you get impatient,S&F.
Keep 'em comin'!!

thank, g/i,

I used to be much more vigilant back in the day, I am getting old.

reply to post by Stormdancer777


I'm good with numbers, but when I try and read anything regarding our tax code I feel like I am reading ancient Aramaic...

It should just be 25% of our income.. across the board, poor to rich.

Originally posted by Rockpuck
reply to post by Stormdancer777

 

I'm good with numbers, but when I try and read anything regarding our tax code I feel like I am reading ancient Aramaic...

It should just be 25% of our income.. across the board, poor to rich.

I should move to Tennessee.

As far as I am concerned the income tax is unconstitutional.

[edit on 033131p://bThursday2010 by Stormdancer777]

the tax charts are adjusted every year and your withholding should change, slightly, with each new tax year.

the democrats didn't change the tax code.