Tax cut for 95% of Americans just not too much

Another day and another President Barack Obama campaign promise turns south. Millions of Americans are enjoying a small windfall from the Making Work Pay tax credit will be in for a shock next spring. The IRS is going to want some of that back. The tax credit is supposed to provide up to $400 to individuals and $800 to married couples as part of the economic recovery package enacted in February. Most workers started receiving the credit through small increases in their paychecks. Every employer must use the new tax table by the beginning of April. 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 next year on the 2009 return. The Internal Revenue Service acknowledges problems with the withholding tables but has done little to warn average taxpayers. These new tax tables will mean smaller tax refunds. The credit pays workers 6.2 percent of their earned income. Just like every other President Barack Obama campaign promise sounded good on the campaign trail and turns to something else after election day.

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