July 27th, 2010
07:46 AM ET
4 years ago

The tax hike nobody's talking about

 There’s a possible tax hike on the horizon that nobody is talking about.
There’s a possible tax hike on the horizon that nobody is talking about.

New York (CNNMoney.com) - Get ready for a smaller paycheck.

At least that's what could happen if Congress doesn't approve President Obama's proposal to extend the Making Work Pay tax credit soon.

The credit, introduced last year as part of the government's stimulus package, boosts paychecks by up to $400 for single filers and up to $800 for joint filers, by reducing the amount of tax withheld from each paycheck.

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Filed under: CNNMoney.com • Taxes
soundoff (24 Responses)
  1. Save America, impeach the treasonous republicans

    In April 2009, President Obama gave me and the middle class a tax cut. It was the largest middle class tax relief we had seen in years. This is due to expire this year, but the right wingnuts are calling that a tax increase. They gave no credit to Obama and the stimulus for the help, but to call this a tax increase is absurd. Republicans continue to dive pretty deep into their manure pile to come up with their talking points.

    July 27, 2010 08:29 am at 8:29 am |
  2. Fair is Fair

    Ah yes... the $7.50 weekly tax cut that the democrats have been touting as part of their "tax cut for 95% of Americans"... a.k.a. "The weekly small cheese pizza".

    Hey Obama... want to increase revenue to the treasury? Here's an idea – why don't you start making the earnings from municipal bonds taxable?

    What's that? You mean doing that would hurt your limousine liberal friends? Oh, never mind... we can't have that, can we?

    July 27, 2010 08:29 am at 8:29 am |
  3. Malcolm Bihm

    Wait, I thought the president raised our taxes. Isn't that why we have the tea party because we were "Taxed enough Already". Darn I must've of missed it because all I do is listen to what Hannity and Beck tell me. (Sarcasm)

    July 27, 2010 08:36 am at 8:36 am |
  4. Save America, impeach the treasonous republicans

    Are you crazy right wingnuts now admitting that the stimulus was good for Americans and do not want the benefits to expire?

    July 27, 2010 08:41 am at 8:41 am |
  5. Steve in North Carolina

    Get ready people. God forbid that they try to figure out how to reduce government spending. There are probably more tax hikes coming that nobody is talking about at the moment.

    This administration is an ecomomy killer!

    July 27, 2010 08:43 am at 8:43 am |
  6. Gil

    So why are the republicans balking? They keep talking about higher taxes being a problem? But if they vote No again they can blame Obama. They will ruin this country yet for purely political reasons to make the Obama Administration look bad. They are a disgrace to themselves and this country! Remember them come November! and vote NO to the GOP.

    July 27, 2010 08:45 am at 8:45 am |
  7. Angus McDugan

    I hope the reduction of withholding does not end up as having to pay it back in on tax day. Anyone know for sure? I'd like to know.

    July 27, 2010 08:50 am at 8:50 am |
  8. Madman

    The human toll of what these people are doing in Washington hit home for me last night. While they sit in their tax funded penthouses and drink their tax funded booze and eat their tax funded steak and lobster dinners, Everyday Joe American citizens are facing the onslaught of fighting to keep everything they have earned from the fruits their labor. A friend decided he could take the financial crush no longer and decided to take his own life, he left three kids and a wife. This is the true cost of what these politicians in DC are doing, the human price, the true cost for their inabilities and their practices of putting a political agenda before good of country. Do you think they are worried about where their next paycheck comes from?

    July 27, 2010 08:55 am at 8:55 am |
  9. SMH

    I thought Obama wanted to raise taxes... I guess I was wrong.

    July 27, 2010 08:55 am at 8:55 am |
  10. Kevin in Ohio

    Of course it is not being talked about.... anything negative about the annointed one is being ignored by the liberal media.

    July 27, 2010 09:12 am at 9:12 am |
  11. johnnyhouse

    If this government really wants to see change it should pack up and leave Washington and take its financial Czars with it.

    July 27, 2010 09:17 am at 9:17 am |
  12. Bill

    An you won't hear anyone talk about it either .... Finally the liberals are getting worried about all the money they have spent on t Citizens of this great country ... so now they want it back.... get ready to be taxed out of your shorts.

    July 27, 2010 09:17 am at 9:17 am |
  13. ZedLok

    A tax cut for us commoners? Rubbish! I smell a GOP filibuster coming...

    July 27, 2010 09:22 am at 9:22 am |
  14. Kevin

    Middle class americans who don't support this president are nuts. Everything he has done in this administration has been for middle class families. Bush and most of the republicans did everything they could to wipe out the middle class. And now people are set to put them back in power? ARE YOU PEOPLE CRAZY! Trickle down economics does not work, Just look at the history books.

    Continue tax cuts for the middle class repeal the bush tax cuts for the rich. Simple solution, don't worry the rich will still be rich but it will give middle class people a chance!

    July 27, 2010 09:49 am at 9:49 am |
  15. JIlli

    "Because the Making Work Pay credit helps out more than 75% of American households, taking this tax break away will save the government much-needed money, "

    Which is precisely why the republicans will vote against it. They have a myopic view that the upper 2% are the real engine of the economy – if that's truly the case, why did we see such a strong economic downturn, massive growth to the deficit, and pathetic job growth numbers (the lowest in history) while the bush tax cuts were in full force?

    Keeping the making work pay credit benefits the majority – and it's instant stimulus to the economy. Those receiving the break will in turn put that money back into the economy for the essentials they need, whereas the rich just pad their bank accounts. This tax break gives the majority more money that they will spend in these tough economic times. Without their money flowing through the economy, the outlook looks bleaker.

    July 27, 2010 09:51 am at 9:51 am |
  16. Would Tim Mcveigh be a Tea Party hero today?

    Show me the money.I will use the republican motto for all the payoffs they get from the Corporate scumbags.

    July 27, 2010 09:55 am at 9:55 am |
  17. Jane

    Imagine that. And for the "tax cut" he gave year back. My 88 year old father had to PAY taxes in because they changed the paperwork on his pension (without his consent) for the tax cut. This resulted in him paying taxes because they did not take fed tax out.

    July 27, 2010 09:56 am at 9:56 am |
  18. seebofubar

    This is nothing compared to the tax hike every married couple will get if our idiot president doesn't extend the Bush tax breaks for married couples. Get ready for your effective tax rate to go up by 7%. And by the way, lets go ahead and ponish the 3% of the people in this country who are responsible for creating industry and jobs. The guy is so clueless I wonder how he gets is pants on the right way every morning.

    July 27, 2010 10:01 am at 10:01 am |
  19. Dean

    Get ready for a smaller paycheck...........Not hardly with Obama and the Dems leading the way.
    Nonpaying status used to be a sure sign of poverty or near-poverty, but Congress and the president have changed the tax laws to pull much of the middle class into the growing pool of nonpayers. The income level at which a typical family of four will owe no income taxes has risen rapidly, now topping $51,000.
    Now I know why everyone says tax the rich more. It looks like the "rich" are the only ones paying any taxes at all.

    July 27, 2010 10:02 am at 10:02 am |
  20. Jess C

    I'm sure the GOP will "say no" to this too; anything to give us in the middle class a break. Funny how they kick and scream if you try to take the tax breaks from the wealthy, but do the same for middle America, as Obama committed to do in his campaign (and he trying!) they kick and scream like greedy children. It's become comical who the GOP blatantly supports. What I don't get is why so many poor and middle class are sucked in to their rhetoric and vote them in. They are pissed at a President who tries to help them. I call this ignorant. Part of me hopes the GOP takes over again so the poop can be rubbed in all our faces once more because we sure didn't seem to learn anything last time.

    July 27, 2010 10:08 am at 10:08 am |
  21. Liam

    Just another of the many take hikes headed our way via Democrats. They don't call them tax hikes usually because they are expiring – isn't that like slimy politicians they never speak plainly or truthfully. As a small business owner my taxes are going up either way and I have dramatically cut my capital spending until it all becomes clear.

    July 27, 2010 10:26 am at 10:26 am |
  22. gt

    tax hike ? man the just got 400 or 800 for nothing... this country is nuts

    July 27, 2010 10:27 am at 10:27 am |
  23. Joe from CT, not Lieberman

    How much says the Republicans will only agree to this if it is tacked on something extending the Bush Tax cuts. You remember those, don't you? They are the ones that only benefit you if your annual earnings are over $400,000!

    July 27, 2010 10:45 am at 10:45 am |
  24. NYCitizen

    With the economy the way it is, if Congress DOESN'T approve of extending Make Work Pay tax credit, come November, they will VOTED OUT!!!!

    July 27, 2010 10:48 am at 10:48 am |