Friday, January 23, 2009

Please explain this Obama tax cut please?

(My Original Blog Post: -*http://www.latesttrendsguide.com/?p=3011)
obama Tax Cut
I READ THIS ON YAHOO NEWS I AM SO CONFUSED ABOUT THIS LITTLE PLAN I MEAN I GET THAT THERE WOULD BE A TAX CUT BUT HOW WOULD IT GIVE US A CREDIT?


One option that could get Obama a good way toward that 95% is his proposed Making Work Pay credit -- a centerpiece promise in his campaign. The credit would essentially work as a payroll tax credit equal to $500 for individuals and $1,000 for couples.

The credit would have an income threshold. Only those making $75,000 or less ($150,000 or less for couples) would get the full credit. Individuals making between $75,000 and $85,000 (and couples making between $150,000 and $170,000) would get a partial credit.

The credit also would be refundable, meaning that even tax filers without any tax liability -- typically very low-income workers -- would receive one.

Rather than mail out checks to consumers, the IRS, together with employers, could coordinate a change in how much money is withheld from workers' paychecks, so they'd simply get a bigger paycheck.
*I JUST WANT THIS TO BE BROKEN DOWN IF YOU KNOW ANYTHING ABOUT THIS, THANKS
*i mean what are you getting a 'credit' for?
Okay...my main question is why would we get a 'credit'

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