Update May 14, 2009 – My subsequent paycheck reflected a more modest increase of around $15.00. By the way, I took my daughter to Subway for dinner tonight and I had a few cents left over from the $15.00. I confess that we splurged and opted for the meal deals that cost an additional $2.25 each.
I never received any explanation of the larger bump that I discussed in my original post. The bottom line remains the same, however, all of this increase is not a tax cut as is being protrayed.
It only took the MSM three weeks to get around to exposing the truth behind the pay rate changes. In a recent article, Stephen Ohlemacher let the cat out of the bag:
“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. The Internal Revenue Service acknowledges problems with the withholding tables but has done little to warn average taxpayers.”
My guess, no prediction, is that this will not get much traction in the MSM. Mr. Ohlemacher’s article was written on April 30 and I have yet to hear about it on the Today Show or other outlets. Come on Matt, let the people know that their cut is not really that much of a cut and they probably will have to pay some of it back. I have the headline teaser:
“Stay tuned to find out whether you have to pay back some of your stimulus to the IRS.”
I must confess that Today may have already aired this story and since I do not watch it, I could have missed it. Maybe they had Willard Scott announce it.
You can read my original post here.