Feb 21, 2009 5:15 pm US/Eastern
Treasury Orders Employers To Cut Payroll Taxes
Obama: Tax Cuts Will Be Felt By April 1
WASHINGTON (AP) ―
-
-
U.S. President Barack Obama listens before addressing the U.S. Conference of Mayors leadership with Vice President Joe Biden in the East Room of the White House Feb. 20, 2009, in Washington, DC.
AP
The Treasury Department has begun directing employers to reduce the amount of taxes withheld from people's paychecks.
It's part of the economic stimulus package President Barack Obama signed into law this week. Treasury is directing employers to make the changes as soon as possible and no later than April 1. In his weekly radio and Internet message, Obama says the measure will mean a typical family will bring home at least $65 more every month.
His ambitious $787 billion package of federal spending and tax cuts aims to revive the economy and save or create 3.5 million or more jobs. It's intended to inject a sudden boost of cash into transportation, education, energy and health care. It also offers extended unemployment benefits.
Obama says the stimulus bill is "only a first step on the road to economic recovery." He says the country also needs to repair the banking system, get credit flowing again and stem foreclosures.
"Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans," Obama said Saturday in his weekly radio and Internet address.
Obama says his signature "Making Work Pay" tax break will affect 95 percent of working families.
The $400 credit for individuals is to be doled out through the rest of the year. Couples are slated to get up to $800. Most workers are to see about a $13 per week increase in their take-home pay. In 2010, the credit would be about $7.70 a week, if it is spread over the entire year.
People who do not earn enough money to owe income taxes are eligible for the credit, an attempt to offset the payroll taxes they pay.
(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
World's Most Useless Facts
CBS News Interactive: Eye On The Economy
Click to enlarge
Stumble It!
Comments