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Subject:  Re: Not everyone gets a tax rebate Date:  6/12/2001  3:00 PM
Author:  synchronicity Number:  153070 of 910563

I wrote:
The simple solution would have been to put in the 10% bracket on the first 6K (for single, non-HoH) or 12K (for married) taxable income, have companies adjust wage withholding (starting 7/1 or whenever) to reflect this, and simply have many of us get a refund when we filed our 2001 taxes. Unfortunately, for political reasons the decision was made to issue these "rebate checks".

and IndecisiveFool replied:
It would be a simple solution, but for economic reasons, the government wants the refund to arrive earlier in the hopes that it will boost the economy. Your idea would spread the extra money from lower wage withholding over a longer time frame.

Very true.

As you might have guessed (apologies for mentioning a political point here) I disagree with the current Administration regarding the need for an "immediate" tax refund and its impact on the economy as a whole. Thus I prefer the "lowered withholding/refund later" approach. However, I'm not in charge, so my opinion doesn't mean much.

Starting in 2002, the 10% bracket will be incorporated into the tax calculations and into wage withholding.

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