So what does that mean for us working stiffs? The “Making Work Pay” break is expected to affect about ninety-five percent of us – working families.
By April 1, Obama says, “typical” families will have an extra $65 on average to play with each month. Officially, it will be about $13 per paycheck in 2009, dropping to $7.70 per paycheck in 2010.
Rather than waiting around for tax cut checks to show up in your mailbox, these cuts will be made immediately by the person responsible for payroll at your job – they’ll be adjusting your deductions to put a little extra in your check and sending a little less on up to Uncle Sam.
I’ve heard from some folks that $65 a month just won’t cut it, but let’s face it – money is money. Every little bit helps. And $65 buys a lot of kids clothes off of the sale rack. It amounts to a yearly supply of yogurt drinks for my daughter (bought in bulk at Sam’s Club) or two days of daycare for a lot of folks (yes, there are places where daycare is $30 a day).
What’s interesting to note is that this cut is NOT supposed to be used to boost your savings for your kids’ education. Tax cuts sent in lump sums are more likely to be squirrelled away by the thrifty, while cuts in small increments are more likely to be spent on the little things (like the latte you cut out when things started getting tight) – boosting the economy.
So what will you be doing with the money? Will this help your family?