I heard that the Making Work Pay Tax cut provides only $8 per week. Is that true?
To deploy the $400 per year for individuals and $800 per year for couples Making Work Pay tax cut quicker than any tax cut in history it will be spread out over weekly paychecks – boosting the stimulative effect. As President Obama has said: “By April 1st, a typical family will begin taking home at least $65 more every month. Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans.” An extra $65 each month could mean being able to fill up the tank for a week, to pay for a week’s worth of health care bills, or paying the monthly bill for telephone for the average American family. [Consumer Expenditures Survey, 2007] This addition to paychecks will prompt much-needed consumer spending to stimulate the economy – in contrast, to last year’s lump-sum rebate which was used by some for savings or to pay off credit cards.
