My last two paychecks were mysteriously larger by about $27. As I am nowhere near the category that gets to stop paying social security taxes at a certain date during the year, I was confused—until Sarah helped me figure out that it’s part of the stimulus package. A quick email to the payroll people at my company verified this fact. I get paid twice a month, so we’re looking at an enormous $648 per year in extra money to spend.
Woo-hoo! I’m rich! I’m a happy miser!
Let me think of all the things I can spend this extra $54 a month on. Let’s see, it just covers the phone bill for the landline. Or I can pay the cell phone bill and have enough left over to go to a movie, but not buy any popcorn or candy. Wait, it will take care of about two tankfuls of gas.
But to go out and spend money that will help the economy? Um, hm. I priced the cost of installing a gas stove. Not counting the stove, it’s going to cost me about $800. Depending on the stove, of course, I go over a thousand, but not by much. I don’t need a fancy gourmet stove, just one that has gas burners instead of electric. So, can I buy the stove and credit the stimulus package? Nope.
Wait, I can buy $54 worth of new clothes per month. A pair of shoes on sale. I could use a new pair of comfortable work shoes. However, $54 doesn’t go as far as it used to in the clothing business, unless I buy at Wal-Mart or Target. Well, I do need a new pair of yoga pants.
I know! I want to try a new antivirus program, and it costs just about the same as a month’s stimulus money. There you have it. I’m going to be able to buy PC-Cillin, thanks to Obama and the stimulus package.
Too bad I’m not a failing bank. Then I’d really be raking in the stimulus bucks, instead of getting this lousy $27 per paycheck.
careful, with comments like that, you’ll wind up on the right-wing hate-group watch list!
It isn’t a tax cut. It’s a change in the withholding schedule. You will still have to pay taxes on that $648 per year. In other words, with everything else still going up, you may have to switch your cats to dry Purina.
chsw
Actually the “extra money” is part of an upfront tax credit.
The amount of withholding taken out is less, but you will still owe the same at the end of the year.
So the amount of a refund-if any- will be less or you will owe come 04/15/2010.
Happy Tea Party Day!