I’m a bit puzzled by Democrat Roy Barnes’ accounting methods here. Funny how an accounting error can lead to his allegedly owning a home for tax break purposes, when he didn’t actually own it. On top of that, he now claims to be due a $30,000 refund over a failed bank in which he had invested. Yet, last week he was only due approximately a $20,000 refund.

It’s unclear to me if making bad investments, seeing personal tax breaks that don’t exist, while seeming to have no real handle on one’s personal finances, is what Georgia voters want in a governor.

ATLANTA — Roy Barnes claimed federal and state income tax breaks in 2008 and 2009 for depreciation on a house he doesn’t own, his campaign acknowledged Thursday.
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Cobb County property records show Barnes’ daughter and son-in-law have owned the house in Marietta since 2007 when Barnes gave it to them. Barnes, the Democratic nominee for governor, owns several properties on the road.

Barnes campaign spokesman Emil Runge called it an accounting error and said, as a result, the former governor had underpaid about $7,500 in taxes for the two years. His accountant is amending the  returns to remove the tax break.

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Recently, 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.

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:

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