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In other words, will LESS tax be taken out for the second half of the year?


From the conference committee report:

The conference agreement establishes a new 10-percent income tax rate bracket for a portion of taxable income that is currently taxed at 15 percent. The 10-percent rate bracket applies to the first $6,000 of taxable income for single individuals, $10,000 of taxable income for heads of households, and $12,000 for married couples filing joint returns.
The "advance tax refund" check being sent out starting in July is based on the whole $6,000 (for singles) of taxable income in the [new] 10% bracket. (5% times $6,000 is $300)

More from the conference committee report:

Accordingly, this rate reduction credit operates in lieu of the new 10-percent income tax rate bracket for 2001.

Me again:
So you aren't going to see reduced withholding until 2002.

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