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Your Tiny Slice Of Obama’s ‘Stimulus’ Pie

From the sleight of hand artists at Brookings Institute and the Urban League, via their amanuenses at MSNBC:

Your Share of Stimulus Tax Breaks

by Jeanne Sahadi
Monday, February 23, 2009

A study of the recovery plan shows most households will qualify for a tax break. Boost for some could be worth several hundred to several thousand dollars.

Roughly 97% of American households could see tax savings as a result of the American Recovery and Reinvestment Act, according to a new analysis by a nonpartisan research group.

The Tax Policy Center crunched the numbers and concluded that the average savings would be $1,179. But how much a household actually gets depends on income, marital status and whether a filer has children. The savings range from a few hundred dollars to several thousand.

The law, which President Obama signed on Tuesday, contains a range of tax breaks for individuals. Those likely to affect the greatest number of households are the new Making Work Pay credit worth up to $400 ($800 for joint filers); a patch to protect middle- and upper-middle-income families from having to pay the Alternative Minimum Tax; and expansions of the earned income tax credit and the child tax credit for low-income families.

There are also breaks that address specific situations: a new credit for first-time home buyers, a sales tax deduction for car buyers and a new credit to help pay for college tuition. For people receiving unemployment benefits, the first $2,400 will be tax free…

In addition, the economic recovery plan contains a host of tax breaks for small businesses

The first tax credit filers will enjoy is the Making Work Pay credit, which will show up in increments in people’s paychecks starting in April…

But in many cases, a household won’t see some of their stimulus savings until they file their 2009 returns, which they can’t do until 2010.

Of course what filers’ save on their federal taxes under stimulus may be muted by the fact that their cities and states — facing steep budget shortfalls that will be lessened but not eliminated by stimulus funding — may end up raising taxes and fees.

What a tissue of lies and propaganda.

Roughly 97% of American households could see tax savings as a result of the American Recovery and Reinvestment Act, according to a new analysis by a nonpartisan research group.

As we have noted before, this “nonpartisan research group” is none other than a front for the Brookings Institute and Urban Institute.

After their formation in 2001, the Tax Policy Center vehemently opposed every Bush administration tax cut.

In addition, the economic recovery plan contains a host of tax breaks for small businesses.

Funny, but these “tax breaks” are never elucidated.

Note how the accompanying chart shows tax savings from $476 (95%) for people making under $19K to  $39,350 (1.4%) for people making under $2.8 million.

If this was a Republican proposal the left would scream "tax breaks for the rich" about such a disparity. 

We seem to recall lefties crying about past Bush tax cuts as saving enough money for a hubcap for low income earners and a Mercedes for the rich. But that was then, and this is now.

Also not the minor detail buried at the very bottom of the CNN article:

But in many cases, a household won’t see some of their stimulus savings until they file their 2009 returns, which they can’t do until 2010.

Of course what filers’ save on their federal taxes under stimulus may be muted by the fact that their cities and states — facing steep budget shortfalls that will be lessened but not eliminated by stimulus funding — may end up raising taxes and fees."

In other words, not only will these “tax savings” come too late to stimulate the economy out of its current recession – but they will probably not offset the near certain rise in state and local taxes.

Lastly, lest we forget, during the presidential campaign this selfsame “nonpartisan” Tax Policy Center authoritatively predicted quite a different story, via CBS News:

McCain, Obama Spar Over Economy

In Dueling Speeches, Candidates Take Shots At Each Others’ Economic Recovery Plans

DENVER, July 7, 2008

A recent study by the non-partisan Tax Policy Center says Obama’s plan would give a cut of more than $1,000 dollars to families making between $37,000 and $66,000 a year. Under McCain’s plan they’d get just $319, according to the study.

Now the Tax Policy Center’s figure is down to $780.

But once again, that was then and this is now.

(Thanks to Rightwinger for the heads up and commentary.)

This article was posted by Steve on Tuesday, February 24th, 2009. Comments are currently closed.

16 Responses to “Your Tiny Slice Of Obama’s ‘Stimulus’ Pie”

  1. Flession says:

    So, what does everyone gonna spend their $13 a week (on average) on?

    I got a sports car all lined up.

    • MinnesotaRush says:

      I signed up for a payment plan on the first citizens space flight … (of course the thought occurs to me now I might get there naturally long before my tax savings gets me there .. :-)

  2. BigBad says:

    If the stimulus is 1 trillion dollars and “1/3 is tax cuts”, then it COSTS 300 billion to give us a “tax cut”!!!!

    Shouldn’t a tax cut be FREE OF CHARGE to us?

    Oh that is right it is another welfare scheme.

    • pdsand says:

      That’s just the twisted logic that thinks that government is entitled to tax dollars, so they consider a tax cut a cost to the government. In their warped little minds, this makes conservatives have to justify tax cuts just as much as liberals have to justify spending.

  3. proreason says:

    One of Rush’s themes yesterday explains this perfectly.

    It’s all about telling people what they want to hear. They believe it and they are happy.

    Bill Ayers and Saul Alinksy prepped the country by changing the curriculum in public schools from reading and arithmetic to improving self esteem. And we saw the flowering of that yesterday when ACORN’s Bertha Lewis made a complete fool of herself and was totally oblivious to it.

    Also notice how the table labels a column “drop in tax bite”. Ever see that before? Well they didn’t want to say “tax cut” because the first two rows and much of the third row don’t pay any taxes. But why they would bother with such a detail when the whole article is a lie about a lie about a lie is unfathomable.

  4. BigOil says:

    Their brilliant analysis fails to factor in the impact from the Democrats allowing the Bush tax cuts to expire. Actual taxpayers are faced with a large tax increase in 2010 that will swamp any cuts in the porkulus bill.

    Why bother with the facts – it just serves to cloud the propaganda message.

  5. pdsand says:

    “The first tax credit filers will enjoy”

    Filers, not payers, mind you. But I’m sure we all knew that.

    “Enjoy”, really, that extra ten bucks or whatever will create enjoyment?

    And why, when it comes from Obama, is an alleged tax cut something that we are allowed to enjoy anyway? I thought when they came from Bush they were kickbacks and corporate welfare and blood money, and I hope you all burn in hell with your tax cuts you greedy bastards. But when it comes from Obama, enjoy it.

  6. pdsand says:

    In the spirit of the rich liberals in Hollywood and elsewhere who felt the urge to speak on behalf of all high-income Americans and say that they didn’t want Bush’s tax cuts for the wealthy, I will now speak on behalf of low-income individuals, as a year ago my income was something like 17k for the year. Mr. Obama, this tax credit is ridiculous, and I’m not going to adjust my withholdings so that I can get your credit over the course of the year, because frankly messing with my withholdings scares me, that’s why I always claim single and 0, then get a big refund at the end of year. One year I messed with my withholdings and ended up having to pay 400 some-odd dollars, and it nearly killed me. My wife still starts looking at me funny come tax season, and I know she’s thinking, ‘you’re not going to screw this up again, are you?’ The extra few dollars a paycheck will not make that much of a difference, but an extra $400 at the end of the year will, so I will just say poopy on you and take my refund a year from now. Then I will probably either put it in savings or pay off bills, thus failing to stimulate the economy even then.
    So, Mr. Obama, on behalf of low-income people, we don’t want any part of your stimulus plan. We don’t mind paying the extra money in through our FITW and waiting to get the money all at once more than a year from now, and then probably not using it to buy new stuff.

  7. Chinnubie says:

    This whole idea of a “Tax Cut” is a total joke! If he can’t send checks like last year the whole point is moot. I know there are going to be a LOT of Obamamaniacs wondering when their check is going to show up. Little did they realize he doesn’t want to give anything to anybody. I mean really $13 a week I can’t even use that for gas not to mention I will not see it because our federal withholding never even adds up to that. Even if I did see the $13 a week is that REALLY going to make me go out and spend wildly on crap I don’t need!

    Best way to get any of this Porkulus is to apply for a grant to study lint build-up in the belly button on people with innys.

  8. proreason says:

    Just to be clear on one element of the table that has nothing to do with the lies about stimulus tax cuts.

    Most people making 2.8M in income a year are the parasitic idle rich, and they declare any income they feel like, since they are never audited, and they have dozens of ways to hide and shelter income. Occassionally, they declare a minor fraction of the amount they actually make and let it be taxed just in case they are asked about taxes sometime. The tiny % payment will fool anybody hearing it into thinking it is consequential. To those parasites, taxes aren’t even in their vocabulary.

    A few people who declare 2.8M for a year actually earn it. Mostly, they are C-suite business people, very successful small business owners, athletes and media stars. Those people actually pay a ton of taxes.

    When you see charts that show the top 1% pay 50% of the taxes, the charts are talking about the people who WORK for money, not the parasitic rich, and most make a few hundred thousand a year, not millions. THOSE people, and YOU will end up paying 25% to 100% more in taxes in the next few years. Yes, 25% to 100% MORE.

    The idle rich will continue to pay virtually nothing.

    • Colonel1961 says:

      I get $39,350.00 back?! Sweet!

      (I am, of course, kidding…)

      And where’s the $603k to $2.8M bracket?

    • proreason says:

      Hey colonel, are you coming around to my side of the argument about the parasitic rich? I’m not after people who either earn it or invest their money in something useful, you know, just the dredges who squeeze theirs, cheat and scream at us to pay pay pay pay (while they control $20T in assets).

      I saw the other day that Kerry moved $18M from foreign stocks to U.S. stocks prior to his run in 04. My interpretation of that…..it means he and the Madame probably had about $30M in stocks, or 3% of her Forbes-estimated $1B fortune. Kind of like a working man putting about a grand in a mutual fund.

      And thanks for your very kind words the other day. Much appreciated.

  9. 12 Gauge Rage says:

    Anybody hear from that young woman lately? You know, how she was gushing with glee now that Obama is going to be president that she won’t have to worry about filling her car with gas or making her mortgage payment? I guess the reality of only getting small petty cash has thrown cold water on her parade.

    • TwilightZoned says:

      Pro, thanks for providing the link. I had not seen that posting.
      Your post…stunnning. Sort of like me having to pick
      my jaw up off the floor. Man, between his peeps and the illegals,
      we look like absolute suckers for paying taxes.


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