pan6467

Let's say you made $32,500, on salary (make it easy), that is at the 15% tax bracket. Meaning they take roughly 15% of your pay for taxes.

Now, you get the "stimulus" and that $700 goes to your income. You now show that you made $33,200. That puts you into the 25% tax bracket, thus you are now paying 10% more in taxes and making less than 2% more from the "stimulus" package.

And that is just federal, you will be taxed on that money by state, local, and so on also.

Therefore, in the end, if this happens to you, you will be paying much more in taxes for that "stimulus".

here's a link to the fed. tax bracket:

Tax Brackets (Federal Income Tax Rates) 2000 through 2008 and 2009

If you use the calculator and type in the numbers I gave you, before at 32500 you pay 4458 for a rate of 13.72%.

For 33200 you pay 4563 ($105) more at a rate of 13.74%. So your $700 is now $595 and that doesn't include state, local, and all those nice other taxes they take out.

595/52 = $11.44 a week - all the other taxes. So you may be able to buy half a tank of gas a week, provided gas doesn't go up.

That stimulus is a joke and misleading the people. They fail to mention the taxes you will pay on it. No, you won't lose money, but you won't be gaining enough to make any difference in your lifestyle.

If you make 22,000 a year and add that 700 you went from 2883 in taxes and 13.1% to 2988 and 13.16%. That's $105 more taking you to $595 minus all the other taxes. So someone barely making a living wage gets slammed on this.

595/52 = 11.44 before every other tax comes out.

If you give a stimulus why tax it?

I must say it is somewhat better than getting a check for 300/600 and filing you taxes and finding out not enough was withheld and you owe money because of that "stimulus". I'm just trying to warn people before it happens to them next year.

Why not just cut a check for $700 tax free dollars?

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I just love people who use the excuse "I use/do this because I LOVE the feeling/joy/happiness it brings me" and expect you to be ok with that as you watch them destroy their life blindly following. My response is, "I like to put forks in an eletrical socket, just LOVE that feeling, can't ever get enough of it, so will you let me put this copper fork in that electric socket?"