Question about Obami $13
I was talking to an accountant the other day and asked him about the $13 dollars a week Obami is giving away. His answer went something like this. He says it is $8 to $13 per paycheck and that assumes you get paid every two weeks. So that would be between $16 and $26 a month. He also said it still taxable income, they didn't change the tax tables. Basically it's a shell game, they are paying you with your own money. As I understand it, all they are doing is withholding between $16 to $26 dollars less per month, so you'll get less as a return at the end of the year.
I haven't been able to find any info on it and was wondering if anyone else knew anymore details on it. It seems to me like they are just taking money out of your own wallet and handing it to you. I could be wrong though.
Oh and I would like to apologize to Chris for being an ass on his forum.
It's my understanding that it is a rebate that is divided up among paychecks.
My understanding was that it was $8 - $13 per week. The dirty secret though is that they are lowering the withholding amount from your paycheck by that amount but not actually changing the tax tables. So when you go to do your taxes next year you will get a smaller return than you normally do (or pay more in if that is the case). So it really isn't even a tax cut just giving you your return a little early.
This is more how I understood it, except based on a two week pay period.
Originally Posted by IowaBayDog
An economist on the radio yesterday stated that since the tax 'rates' haven't been changed, only the withholding tables, this is a tax credit, NOT a tax cut and will be counted as taxable income in 2010.
You'd better not spend the "extra" money but put it in savings and get 3% interest (if possible) so that you can get taxed on THAT also and end up with a net 1% gain.
An alternative, I guess, might be to buy some GE stocks at $8 a share, get "some" kind of dividend and hope they go up as Obama's "green energy" scheme gets going
Actually, I think it would be a good idea to suspend all withholding, have everyone ante up on April 15, then hold congressional elections in May. Then we would see some real change.