The stimulus package that was passed by Congress and signed by President Obama offers some tax relief for the working public. But there are a few things that people may not know or have considered about what the extra money will mean to them and to their family.
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1. The amount will be minor. For most families, $13 a week is not going to make enough of a difference in their lives to make it worth the effort of passing the package in the first place. It is definitely not enough for families to make a mortgage payment, help them buy a new car (or even a new used car) or even have a dinner out.
2. The additional income given to individuals and families will count as income when it comes time to file taxes for 2009. That additional $600 could push people into a higher tax bracket in the long run.
3. Self employed individuals and contract laborers (those that pay their own payroll) will not see any increase or change until after taxes are filed in 2010.
Tax cuts may seem like a good idea but there could be some pain felt in the long run. The increase in income may not be enough for families to notice a difference but it could be enough to force the taxpayers to pay more taxes in the end.