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The bumpy road to financial independence. . . .

 

Friday, March 13, 2009

Holy tax cut, Batman!

Well, the latest Stimulus Plan appears to be on its way to becoming reality, which means that most Americans will see some extra moolah in their paychecks come April or May. But how much? Technically, individuals will see up to $400 more over the course of the year, while couples will receive up to $800.

I've just discovered that one of my favorite online calculators, at Paycheck City, actually has a pre- and post- 2009 Stimulus Bill calculation. Using this, I was able to see that I'll receive $35 more in each paycheck (I'm paid monthly) after the tax cuts go into effect. This is about what I expected. In fact, before the November 2008 election, a page at Alchemy Today had a tax calculator, so we could see how much tax savings we'd have under an Obama presidency, versus a McCain presidency. Now, I have no idea whether this calculator is truly accurate (especially on the McCain side). However, the results show that I would receive approximately $468 under Obama.

Well, $468 over 12 months is $39! So it wasn't far off from the Paycheck City calculator (and I'm assuming that Paycheck City is using actual figures from the text of the Stimulus Bill. . . .)

Not bad. Now all I have to do is figure out how to ensure that I plug that money into savings before I ever see it, rather than frittering it away on useless items I don't need. . . .

5 comments:

Frugaller said...

Cool! Nice to have a bit of extra money in your pocket.

In the UK they cut the VAT on products from 17.5% to 15% which was a disaster. Although the Government are still claiming what a success it was in getting money into consumer pockets.

What a joke!

Give us the tax cuts!

Sharon said...

thanks for the good lead! I'll plan to post it on Monday. I have to figure out what I'll do with my new found wealth! LOL $24 a month!

Sharon

Heather & Chaos said...

Oh I so needed that website! Thanks for posting about it! I've been manually figuring out what my paycheck will be and it's a pain! Thanks!!

Zach said...

FYI, the biggest component of the calculation at my site (Alchemy Today) for most people is the Making Work Pay credit. The stimulus bill includes most of that credit, but it was trimmed down somewhat from $500/worker to, I believe, $375 as part of the final negotiations. I'd bet every dime I have that Obama will get Congress to attach the rest of the cut to a future bill this year so that he won't be accused of going back on a campaign promise.

Zach said...

Also, the tax cuts in the stimulus were bigger or as big than the Bush cuts for most Americans -- http://alchemytoday.com/2009/02/10/how-will-the-gop-explain-voting-against-one-of-the-biggest-middle-class-tax-cuts-in-history/

Will be interesting to see how effectively Dems can deploy the fact that basically every Republican voted against such a big tax cut come 2010.

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