Congress Tinkers with Withholding Tax Tables for 2010
by SusanAnne HillerRecently, retired military have received e-mail messages notifying them of a withholding tax increase. The email states:
NO ANNUAL COST OF LIVING ADJUSTMENT (COLA) WILL BE ADDED TO MILITARY RETIRED PAY IN 2010.
DUE TO RECENT LEGISLATION YOUR FEDERAL WITHHOLDING TAX HAS CHANGED.
After much investigating and several discussions with the IRS, it appears the Democrats have played a “cash-flow trick” on working Americans and are taking more out of American’s paychecks across the board–all the while touting the Making Work Pay tax credit.
![MPj03168680000[1]](/wp-includes/images/blank.gif "MPj03168680000[1]")
The trick, when looking at the new withholding tax tables for 2010 as compared to post-stimulus 2009, buries an increase in federal withholding taxes–for all income categories–basically giving the government an interest-free loan until current year taxes are filed next year. Some would blame the increase in withholding on the Making Work Pay tax credit being spread out over 12 months as compared to 2009, which was only over 9 months, but this would be impossible as some middle class wage categories carry an increase in the withholding tax of over $200 per pay period.
Unlike the middle class wage earners, who are going to see huge amounts taken out of their paychecks, unless they increase their exemptions on their W4 form, it’s an increase that most wouldn’t even notice–$10 or $20 in some cases. Here are some of the “highlights” of the new 2010 withholding tables:
1.) Congress has lowered the threshold to capture more wages that qualify to owe taxes–across the board. For example, in 2009 the withholding tax threshold began at weekly single wage levels of $138. In 2010, that same wage is lowered to $116. In short, instead of the taxable wage starting at $138, it is now down to $116–which changes the income threshold and taxes even poorer Americans.
For married couples, the change in the weekly base taxable wage changes from $303 in 2009 down to $264 in 2010. These lower wage thresholds can be seen throughout the new withholding charts for weekly, biweekly, semi-monthly, monthly, quarterly, semiannual, and annual, as well as daily and miscellaneous pay periods.
This across-the-board reduction in the initial wage threshold increases the number of wage earners who would have to pay taxes.
2.) Instead of seven (7) wage categories, there are now nine (9) wage categories. The new structure allows for direct taxation on the middle class with these wages broken out into smaller categories. The direct hit on the middle class withholding taxes can be seen on all of the new tables. Additionally, the IRS could not explain these changes.
Let’s look at the actual numbers for one category and compare them from 2009 to 2010:
2009 Biweekly, Single, Payroll Period, after subtracting withholding allowances
Not over $276: $0 in taxes
Over $276 – $400: 10% payroll tax
Over $400 – $1,392: $12.40 plus 15% of excess over $400
Over $1,392 – $2,559: $161.20 plus 25% of excess over $1,392
Over $2,559 – $6,677: $452.95 plus 28% of excess over $2,559 (Notice the large salary range)
Over $6,677 – $14,423: $1,605.99 plus 33% of excess over $6,677
$14,423: pays $4,162.17 plus 35% of excess over $14,423
Let’s look at the new numbers for 2010 Biweekly, Single, Payroll Period, after subtracting withholding allowances
Not over $233: $0 in taxes
Over $233 – $401: 10% payroll tax
Over $401 – $1,387: $16.80 plus 15% of excess over $401
Over $1,387 – $2,604: $164.70 plus 25% of excess over $1,387
Over $2,604 – $3,248: $468.95 plus 27% of excess over $2,604 (Notice the large salary range is gone)
Over $3,248 – $3,373: $642.83 plus 30% of excess over $3,248 (Notice the substantial increase and 30% tax rate on these wages)
Over $3,373 – $6,688: $680.33 plus 28% of excess over $3,373
$14,450: pays $4,169.99 plus 35% of excess over $14,450
These patterns of additional withholding can be seen throughout the new charts for the 2010 tax year for single and married persons. It appears that everyone earning a paycheck is affected, not just retired military; social security payments will remain the same.
Why would the Democrats tinker with the withholding taxes and, ultimately, cause more stress on Americans and businesses? Why would the Democrats create more wage categories and deliberately target the middle class with a huge withholding increase and 30% tax rate? Are the Democrats trying to backfill the deficits they created in 2009? Because taxpayers will have overpaid the federal government payroll taxes, will they be eligible to get back this additional withholding money in a tax refund when filing in 2011? Do taxpayers in the hardest-hit wage categories even realize that their paychecks are going to be significantly lower, unless they make the necessary changes?
Maybe there is a good explanation for the increase in the withholding taxes from 2009 through 2010, but I remain skeptical, because inherently, Democrats do not have the capacity to reduce taxes and typically make up the revenue somehow.
Get your calculators out and you do the math. Go here for 2009; start on page 4. Go here for 2010; start on page 39.
And you should remember this and the fact that House and Senate Republicans united against the stimulus bill, which may have been the trigger to all of this. And Obama and Congress should remember this from December 21, 2009:
After years of irresponsibility, we are once again taking responsibility for every dollar we spend the same way families do. It’s true that what I’ve described today will not be enough to get us out of our fiscal mess by itself. We face a deficit that will take some tough decisions in the next year’s budget and in years to come to get under control. But these changes will save the American people billions of dollars. And they’ll help to put in place a government that’s more efficient and effective, that wastes less money on no-bid contracts, that’s cutting bureaucracy and harnessing technology, that’s more fiscally responsible and that better serve the American taxpayer.” ~President Obama
Responsibility. Really?
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313 Comments
It's all about the finesse you use when you lie.
Since the Chinese are less apt to loan the government more money, the government has decided to confiscate more of ours so they can redistribute in the name of social justice. The socialist agenda continues.
How much of a raise did Congress get?
Hahahahaha… Barry’s stash…huh? As a leftist you ask the eternal question, “what’s in it for me?” Answer: Higher Taxes! How’s that “hope and change” working out for you?
This is the way the Dems will sneak tax increases in. I saw my military retirement deduction go up and wondered why, now I know. Just wait until the tax increases for healthcare etc. kick in. Write you congressperson and senators and tell them enough is enough. Stop taxing everything. The next tax will be the tax on taxing.
isn't it obviously time to STARVE THE BEAST?
frankly as independently wealthy most of the scum are, they should be working for free….I say put them in the civil structure at a GS-11 wage scale and no more….
Sorry for deleting my post, last night begets poor spelling.
When is a tax cut a tax increase? When Obama and the democrats are in control.
This is nothing, we are about to see the largest tax increase in the history of the world, when the so called "healthcare plan" passes. Imagine a plan where you get to collect taxes for four years, without any payouts. Where do you think the money is going to go, into a "lockbox"?
We are done paying taxes. Have the rich millionare congressmen lose retirement accounts. They don't need this extra money. While we struggle they live in luxary. It's time to refuse any increase. Washington will the cut and spare us the increase. This will be their last straw. Let's run them out of town.
I'm no
Where is the flat tax when we need it?
Better yet claim 12 dependants. I figure were paying for Acorn anyway.
If you have ANY income at all, you're the "evil" rich according to the
dems, and you don't deserve what you earned…Their constituency,
the parasites deserve your money!!..
They sure know how to Run up a deficit. They've got that down to a science…..Maybe more like science fiction.
In California, they instituted additional withholding….now we know where they got the idea.
It seems that we once fought a Revolutionary War due to underhanded taxation without representation. When will all of America wake up and say enough is enough. America must demand accocuntability.
NO_Bama said that he was going to lower taxes for the middle class. I wonder how many people believed him? When are people going to wake up and realize that if a Democrats lips are moving he is lying?
[...] Under the Obama Plan, 95% of American families will receive a net tax cut — except for the ones who have taxes withheld from their paychecks. [...]
The big one is coming…load your muskets and REBEL NOW!
We will just call it a freedom adjustment after all grasshopper this is the way government. We won’t call it a tax it’s a fee, a regulation, a mandate. A hike, health care, a manipulation, anything but theft or tax.
Paying witholding taxes is voluntary. Just remember that when you start complaining.
Pay $0 in witholding, send them one check in April.
If you got your yearly salary on April 15th and didn't get paid again until NEXT April 15th, you'd change your way of living. The Gov't would have to do that too.
That does it I am increasing my dependents!
oBomba Lies!
They passed a Defense Bill with 4.3 Billion in Pork and then say no to COLA increases for retired military and then pull a California Tax IOU on everyone to make up for the stupid spending they make. WAKE UP AMERICA, Chris Dodd and others see the writing on the wall, it is time to fire everyone in Washington. http://www.givemeliberty2010.com
My husband is retired from the railroad…they informed him there would me no COL this year, because there was no inflation!!! Are you kidding me! I go to the grocery store and have to pay triple what I paid last year, and they say no inflation??? wtf???
Yes, it is long past time, but how can we do it?
Great article, what I wonder is where the Republicans have been in calling this out. Should have been shouting this from the rooftops, but no silence! Keep up the good work! Should note that while military retirees got no COLA or Social Security recipients no COLA, government workers got a 2% raise kinda makes you go HMMMMM!
If this is not used to run Democrats out of Congress in 2010, it will be the biggest "blown save" since that stat was invented.
Y'all didn't see this coming? Compare what pitchman Billy Mays used to say to what the govt is fixin' to tell you…"But wait, I'm not done yet…" Be ready people!
NOTHING surprises me about this communist adminstration. We have to stop this takeover. I do believe that starving the beast is the best approach for now, but there is one big but, are people really going to follow through with this?
isn't this what madoff is in jail for?
Dirty rotten cheating lying liars!! Whew….there I feel better.
the way obama is going, we will soon have a flat tax, 100 percent of everything you make!
Soon the Government will tax at 100% and send you a check based on what they think you deserve.
If elected President I would pardon all taxpayers until the Congress passed a law that made the form one page and taxed citizens via the same rate divided by consumption and income – no deductions or exemptions. I'm a pretty smart fellow but I'm no longer able to accurately create a payroll check. This system is absolutely nuts and must be put out of its misery as rapidly as possible.
This is another shining example of how politicians will say ANYTHING to get elected, then once their in, the do whatever they want. They will slip in their pork projects, conduct closed door negotions all while promising "transparancy", change laws when no one is looking, and screw the American people just because they can. Time to clean house!!!
I will make sure I put a note in my employees paychecks next week letting them know about the tax increase. I should also compare the amount based on last years taxes so they really know what is going on. I'm sure they wont believe it! I also will make sure they know that their health insurance will be going up at least 25% as the Gov. of Colorado (Ritter) took away any discount for a healthy group. Sorry, I won't have the pleasure to vote him out.
A dem is a dem is a dem. America Rising!
Sam – we each can find our different ways and accumulatively make an impact. I made some life-changing decisions that help with my share. Probably the two that have the largest impact are getting out of debt and not using credit (huge) and finding alternatives to buying new/taxable items. I also made some changes others will not, like deciding to leave the human ant-hill system and start a business that earns less and is seen to have much less prestige than my worker-ant position provided. — if we each look and commit, we can have an accumulative effect.
just increase your your # of exemptions on your W-4 form (i.e from 4 exemptions to 6) that way less is withheld from your pay. your exemptions on the W-4 does not have to agree to the number of dependents you file on your tax return. problem solved.
Not complaining about that , pay tax every april 15 as is. Just sneaky way of doing this
Are we living in BIZARRO world ? His quote: "We will save American taxpayers billions with this tax increase". WHAT ??????? Aside from proving to be a liar in his pre-election speeches he now thinks we are truly stupid enough to make sense of this completely foolish statement. TAX INCREASES EQUATES TO SAVINGS ?? WHAT ??
I told my relatives 2 years ago in Pgh to expect tax increases if Obama and the Dems got elected. Things got pretty testy before I returned to Ok. Now I have a strong urge to send them this article and say "I TOLD YOU SO".
I am afraid we are not enough to vote them out in 2010. They are already working on an immigration bill and I read that Shumer is going to introduce a bill that anyone who receives any welfare benefits at all (food stamps, medicare,etc.) will already be able to vote without normal voter registration. And is not Acorn also receiving money again? This is so scary. What can we do? So many people don't even know what is going on.
With the amount of withholding less in 2009 due to stimulus there will be less refunds for lower and middle income wage earners. This will really make people understand what they pay in taxes. In 2010 the extra withholding is a way to withhold more money and increase refunds in 2011. People that don't understand that a refund means the government had your money interest free for a year will be happy. People favor refunds and don't know what taxes they are paying.
Claim married with 11 dependents. Settle up at tax time.
The founders of our nation once organized and spoke up against unjust taxation.
They were ignored.
The next time they rose up, it was with weapons. Our elected representatives ignore this at their peril.
Stave the beast. Clain 11 dependents. Then do not file taxes for a couple of years. Take the savings and buy guns and ammo. They will find out that without our money they have no power, no votes and no friends. Fight or die.
[...] From my article at BIG GOVERNMENT. [...]
[...] From my article at BIG GOVERNMENT. [...]
Petition to the Hawaii Government to release Obama’s Vital Records
FULL TEXT OF PETITION:
http://www.thepostemail.com/2009/12/26/petition/
I was wondering when someone would point this out …
I think it is moves like this (probably not this one, but it'll be something like this) that will finally wake up SOMEONE in the fringe media and these scams will be exposed for all to see …
Because somethings have gone down to offset — housing costs, FUEL costs, etc.
Not sure where you shop either; most things around here are less than they were last year, mean in particular is quite a bit less (or in the case of one store, is always on sale…)
Do you honestly expect your representatives to listen to you? Where have you been hiding for the last year? Those people don't give two whistles in a whirlwind what you have to say!
And don't forget, our federal government employees are eligible for COLA increases this year, while the public sector has bled jobs and cut pay. They're practically pushing the private sector to the public sector.
G0DDAMNED C0CKSUCKERS!
[...] get the details of the Withholding tax table changes at Big Government – Congress Tinkers with Withholding Tax Tables for 2010 The trick, when looking at the new withholding tax tables for 2010 as compared to post-stimulus [...]
[...] Big Government – Congress Tinkers with Withholding Tax Tables for 2010 [...]
I think that I will "make" more money now by not working than I will by earning a living. And if I take unemployment and whatever gov't money I can get, that will free me up to protest at my "representatives" offices and make irritated phone calls all day.
Dream on…The media as a whole with very few exceptions are of like mind with this corrupt government!
[...] rest is here: » Congress Tinkers with Withholding Tax Tables for 2010 – Big … tags: 2010-as-compared, basically-giving, congress, fishing, futa, giving-the-government, [...]
very good analysis — thanks. One omission: the line
$6,688 —$14,450 . . .$1,608.53 plus 33% —$6,688
from the tax tables for 2010 was omitted; it should go as the fourth BOLD in the list for 2010.
Does not detract from a very cogent message — thanks again.
I advocte everyone, (Married, Single, Head of Household) should increase their withholding to 10+ keep all the money you can in your check and let the government fight to get it back on April 15. Deduct everything you can. Maximize your retirement funds, prepay college tuition, give to charity. Take control of your money and stop the government and it's leaches from sucking your life away and that of your children. A strike as many talk about sounds good but cutting off the cash flow is the best way to go.
This is a little off subject but still fits in with their corrupt activities…Dodd the sorry SOB has cheated the people of Connecticut once again by denying them the satisfaction of voting his butt out of office, not only them, but all of America will rejoice at his departure…Talk about corrupt, he is to the core, then he tooting his own horn at how proud he is of all his achievements….Got to hand him a trophy for his audacity, (word of the year) the not many have the guts to pat themselves on the back for screwing the people over!
We'll be paying additional taxes for 4 years and NObama will spend those taxes as quick as they come in the door. When it comes time to implement his health care plan there'll be $0 available and they'll scream "Emergency" and initiate another tax! Mark my words!
Which means next April 15 I will have to cough up the difference in what I paid in and what I owe. So exactly how does that help?
Or Fair Tax (better)…
I claim 9 dependents as it is and still get $$ back every year….
just a new thought for me.. but when did this become vogue? I really don't have the answer, but it occurs to me that GWB was big on incorporating faith based non-profit organizations into his solutions.
Fine = Tax for failure
Tax = Fine for success
…just saying…
Have you had a look at the FairTax?
http://en.wikipedia.org/wiki/FairTax
Have you had a look at the FairTax?
http://en.wikipedia.org/wiki/FairTax
Where do you live that fuel has gone down???
All my expenses have been going up steadily for the past couple years!
Nicely put and agreed with!
I've been saying that too. Stop all gov charitable donations (they're unconstitutional) and cut taxes! If a charity is worth while people will support it with the money saved from tax cuts. If people don't support it… maybe it doesn't deserve to exist,
Do a little analysis before taking the max exemptions on W-4 as there are IRS penalties if your withholding does not cover 90% (I think) of your total tax liability.
Me thinks the Republicants are in favor of this….
Agreed… why did gov get ANY raise at all? They're the highest paid sector around now.
This is par for the course for this administration and Democrats in general. Again, they show their arrogance for the will of the American people, and what they perceive as our stupidity. Taking more in taxes now will not decrease the budget, but it will create a great deal of unnecessary work for payroll departments to process the exemption changes. Increasing the size of the government will do nothing to stimulate the economy. For every addition to the government payroll, how many private sector jobs are required to generate the tax revenue to pay for that government employee?
http://theillinoisguy.wordpress.com/2009/12/29/ar...
Thankfully in Virginia we're getting a pretty conservative governor. I hope he talks with Texas gov and start up a nullification plan… hopefully more than a dream.
kasteer, in principle you surely are correct. I'll enjoy my new reason to go find the specific clause. There are so many Constitutional challenges due, we really should be started on them by now.
OK, I guess fuel costs are up a bit from 12 months ago (but down significantly from 18 months ago).
We live in the Midwest.
Don't be so quick to dismiss. Remember, it only took 2 reporters to break Watergate.
Regardless of their bias, the media likes to back the winner. They may be fans of Democrats, but they are not fans of the IRS. They'd be stupid enough to run this story as an "evil IRS" story… only to find out the IRS had nothing to do with it. (Which is why this wont be the story… )
But there will be a story. Sooner or later these idiots who are SO disconnected with the public will do something SO stupid that even the media can't ignore it…
[...] Congress Lies While Making American’s Poorer Via RedState: From the diaries by Erick From my article at BIG GOVERNMENT. [...]
From your lips to Gods ears….I hope and pray that you are right…Sooner than later!
Its going to get a whole lot worse, the government is flat broke, nothing left but the printing press. If the history of socialism/communism is an accurate indicator of our future, they'll start going after private property and other concrete assets owned by the citizenry. Remember the communist philosophy of the "Year Zero". Everything that came before them is the product of an unfair society based on a privledged class gaining unequal advantages. They feel its their duty, and right, to seize what was gained during the period before their benevolent rule.
One thing I'm not clear about is whether this just reflects a change from the reduced withholding that the Dems put through in their stupid stimulus last year. Is this just an increase over the reduced withholding that went into effect in 2009 or is it indicative of a larger increase in withholding? There doesn't seem to be much info available online other than "withholding is bigger than last year."
I had no idea that I wasn't getting my COLA increase in 2010, I know that Social Security recipients where not getting one and was pissed about that now I'm really pissed! I wonder how much the parasites in D.C. are giving themselves? Must be nice to vote your own pay raise! Term limits or we are doomed! No retirement checks for elected officials anywhere any time, medical coverage only while they are in office. And a thurough independent investigation of all elected officials 5 years after they leave office to assure the citizens that all laws are followed.
Thanks for the heads up. I tinkered back and fixed it via my W-4.
All you brilliant patriots might want to put down the muskets and get a calculator instead. I did, and calculated that my 2010 biweekly witholding according to the tables linked is exactly $1.69 LESS biweekly than my 2009 at $92,000 a year.
good point.. the nasty fine. soon will fined for just existing.
I noticed this, too, a month ago when I got the tables from irs.gov and put them in a spreadsheet that I use to calculate my taxes. I had never seen a tax table where the rate increased, then went back down (the 25%-27-30-28 brackets). I figured it had something to do with the Make Work Pay thing, or whatever it's called, since I've been hearing since last year that there was some trickery involved in that whole scheme.
If they are messing around with your paycheck, just wait until they get your health records!
[...] [...]
Yes Cynthia and the Republicans have no saavy PR people, they should be shouting it from the rooftops…but I hear the silence, kinda makes me wonder why!
You must have failed your math class. Check your numbers , a retirement of 45,000 has a change of $20, so you have more than that my friend, and if you did not want that money in the first place why didn't you voluntarily give it away or more. little by little your $92,000 will turn into $30,000
Well, you must be lucky. Mine has increased by $399.65 plus an increase in the percentage from 25% to 28%.
It's going into the same "locked box" they put Social Security into….you know, the one the sticky fingered politicians broke the lock on.
I agree, they are trying to break the backs of the people through heavy taxation and spending…well, that game can be played both ways!
Huh?
I followed your links and I did the math as you suggested, using the semi-monthly tables for 2009 and 2010, excluding exemptions and other modifications to the base tax witholding. I got this:
2009: Per paycheck tax = $932.28
2010: Per paycheck tax = $931.78
Then I tried again, same salary, using the bi-weekly tables:
2009: $954.22
2010: $953.68
What am I missing? This seems to invalidate your argument, at least for the “Over $3,373 – $6,688″ bracket.
Then explain why retired military and everyone here has confirmed differently and the number on the charts are signficantly higher…especially for singles.
At one time I thought that also, that people were not aware of what is going on….I think they are very aware, and are sticking their heads in the sand, as if they hide from the facts they will go away…well they won't, and until people pull their heads out of the sand and Democrats pull their heads out of Obama's A$$ they the liberal socialist will keep seeing how far they can go! Like a kid testing his/her parent, (usually Mom) before Mom picks the kid up and paddles his/her A$$! Now I say it's time for an A$$ whopping!
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