Obama: Broadest, Quickest Tax Cuts Ever

In Weekly Address Says Stimulus Package's Tax Relief Taking Effect April 1 Is First Step On Road To Recovery

(AP)  It took only weeks for the notoriously slow Congress to pass the $787 billion economic stimulus package. President Barack Obama signed it into law less than one month into his presidency.

So when should most people hope to start seeing the benefits of tax cuts in it?

By April 1, according to the president.

"Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans," Mr. Obama said Saturday in his weekly radio and Internet address.

The president said his signature two-year "Making Work Pay" tax break will affect 95 percent of working families, and, in six weeks' time, a typical family will start taking home at least $65 more every month.

Taxpayers won't get a separate check mailed to them like many did with last year's one-time payment designed by the Bush administration to help boost the economy.

Instead, Mr. Obama's credit - up to $400 credit for individuals and up to $800 credit for married couples - is to be doled out through the rest of the year through paychecks. Most workers are to see about a $13 per week increase in their take-home pay. In 2010, the credit would be about $7.70 a week, if it is spread over the entire year.

People who do not earn enough money to owe income taxes are eligible for the credit, an attempt to offset the payroll taxes they pay.

But the credit is phased out for higher-income taxpayers, defined as individuals who have a modified adjusted gross income of between $75,000 and $95,000, and married couples filing jointly who make between $150,000 and $190,000. Thus, the administration says many of them will see little or no change in their paychecks.

With employers and payroll companies responsible for making the necessary changes, no worker has to fill out a new W-4 withholding form or do anything else to get the credit. The Internal Revenue Service, however, is suggesting that individuals and couples with multiple jobs submit a revised withholding form to be on the safe side. And, it's always a good idea for people to keep a close eye on pay stubs to make sure their money is included.

In concert with Obama's announcement, the Treasury Department on Saturday began directing employers to reduce the amount of taxes withheld from people's paychecks in accordance with the new law as soon as possible and not later than April 1. The IRS also released new withholding tables on its Web site to help guide employers in reflecting the new credit. It says more instructions about tax provisions in the law will be available next week, and will be mailed to more than 9 million employers next month.

"We have the wheels turning to deliver much needed boosts to the paychecks of working Americans," Treasury Secretary Tim Geithner said in a statement.

Mr. Obama's expensive and ambitious package of federal spending and tax cuts is designed to revive the economy and save or create 3.5 million or more jobs. It aimed to inject a sudden boost of cash into transportation, education, energy and health care, while helping recession victims through tax cuts, extended unemployment benefits and short-term health insurance assistance. It also will add to a rapidly growing national debt.

The president signed the measure into law Tuesday.

In his weekly address, Mr. Obama said he was grateful to Congress, governors, mayors and all the people who supported the measure.

Still, he added: "It is only a first step on the road to economic recovery. And we cannot fail to complete the journey." He said the country also must stem foreclosures, repair the banking system, get credit flowing again and revamp financial industry regulations.

And, even as he promoted the record-breaking spending plan, he called for doing what's necessary to control "exploding" deficits as the economy begins to improve.

Mr. Obama is holding a bipartisan "fiscal responsibility summit" at the White House on Monday to talk about ways to control the trillion-dollar budget deficit. The next day, he is to address a joint session of Congress, a speech expected to focus heavily on the economy. On Thursday, the president will send a budget request to Congress "that's sober in its assessments, honest in its accounting, and lays out in detail my strategy for investing in what we need, cutting what we don't and restoring fiscal discipline."

Republicans are certain to hold him to that.

In the GOP's weekly address, Rep. Dave Camp of Michigan, the top Republican on the House Ways and Means Committee, said his party wants to work with Mr. Obama to solve the country's economic problems "in a responsible way that does not burden our children and grandchildren with a mountain of debt."

"We can't borrow and spend our way back to prosperity," Camp said. "If he is serious about dealing with the tough issues and getting spending under control, his budget will show it."

[waitn2ctruth]

Trying to keep this straight in my feeble mind. Hmm, let''s see: $700b under GWB for bank bail-outs (really went to golden parachutes, executive pay, big banks buying small banks, etc..), $787b under BHO for stimulus (includes $400 to $800 per year tax credits for 95% of Americans - less revenue for Uncle Sam, folks), possibly $40b for the Big 3 to continue making gas guzzlers, lower tax rates for middle-income folks, AND reduce the deficit by halve come 2010? It just doesn''t compute.

[raflin0010]

Tax cuts...April 1st? For the endlesstimes that Republicans scream for "Tax cuts," jsut where are they now? Shouldn't they be foaming with delight and jumping up and down with joy?? Republicans, where are you? Here Republicans, here Republicans, come out, come out wherever you are......

[keepontopic]

Oh Goodie - another rethug white supremist tool has turned up in William Ayre.
Dude do we have to do a list of all the GOP folks awaiting either trial or jail?
Good luck comparing it with the number of Dems awaiting the same fate.....

[national4321]

Obama, for example, warned Congress of an economic %u201Ccatastrophe%u201D if it didn%u2019t support his plans to fix the economy. When Obama signed the $787 billion economic stimulus bill on Feb. 17, Wall Street reacted with a 3.8 percent decline in the Dow %u2013 a slide that continued through the end of the week.

%u201CIf a leader stands up and repeats over and over how bad it is and how it is in fact the worst ever, then what we%u2019re going to do at some point is believe him,%u201D Huckabee warns. %u201CThe people who supported him and voted for him did so because they trusted him. They did so because they believed what he said on the campaign trail.

%u201CSo now if he%u2019s out there every day telling us it%u2019s the worst it has ever been, there are going to be a significant number of Americans who are going to say: %u2018Well, I guess the same guy who told me %u2018Yes we can%u2019 is now telling me %u2018No we can%u2019t.%u2019%u201D

Huckabee adds: %u201CIt%u2019s the worst possible direction he could take. I think about how polar opposite it is from sort of the classic FDR message, %u2018We have nothing to fear but fear itself.%u2019

[thgdriver1]

Does the $13.00 a week apply to Hillary Clin-toon also?

I understand after writing off 13 million in campaign debt she still owes 6 million to friends. I guess with her friends knowing about her 13 dollar a week windfall they are relieved and will get their money faster then ever.

[thgdriver1]

$13.00 dollars a week, wow, And I still get to make payments on deadbeats mortgage they never could afford in the first place. Lets see, using Nobamas new math, that's somehow $65.00 a month. looks like I am still in a hole by hummmmmmmmmm, $1000 for deadbeats mortgage minus $65.00 = $935.00.

[neonutty]

$ 13.00 a week. If my employer gave that to me as a raise I would consider it a slap in the face. Who does obama think he is fooling other that those who voted for him? My kids get $15.00 a week for pulling weeds.


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Posted by historydude2



Once again we are blessed with the opinion of a totally selfish and greedy individual. This person has no clue. Even if the neocon talking points were true (that would be a first), $13 per week times 52 weeks equals $676 per year, times 100 million workers that means an additional $67,600,000,000 will likely be put into circulation every year this program is in effect. This creep needs to stop thinking only about himself. Maybe someone should slap him in the face.

[mrzerato]

Dimwitocrats are the tax and spend party.

They don''t pay their taxes but sure can spend money.

Posted by thgdriver1

As opposed to the repooklican'ts that are the borrow and spend party. As we have seen witht he 6 trillion dollar debt that bush and his repooklican'ts did the last 8 years

[jxknowles]

I don''t know if I should laugh or cry. - Inketolstoy
-----------------------------------------------------

Please try Clozapine, Geodon, Seroquel, Risperdal, Zyprexa or Abilify. These are all common medications for what ails you.

[inketolstoy]

"Cheers! It''s taking just weeks for President Barack Obama, members of Congress, and the administration to demonstrate Federal Government working with the people, for the people. What a refreshing turn around from the last eight years."

As I started to read this, I thought: Please let this be sarcasm, please let this be sarcasm, nope, this person is serious. I don't know if I should laugh or cry.