Tax Tables

I can't confirm this, so please check it for yourself, but I am hearing that despite the changes in withholding in President Obama's tax proposals, there will be no changes in the tax tables.

If the above is true, that means that you will have $13 a week more to spend during the year, but there will be no change in the amount of tax you owe at the end of the year.  If the increased amount in your paycheck starts in June (I'm not sure when it is supposed to start), that means that approximately $350 of withholding won't happen, and you will owe that money in April 2010, depending on how closely you calculate your withholding.  That is not a tax cut--that is a sleight of hand designed to make you feel better.  Since the consequences will not be felt until 2010, you might not make the connection.  As I said, I can't confirm this, so I will be looking into it further as the budget is discussed.