President Obama’s administration promoted a tax cut in the past two years, averaging $400 a year for individuals and $800 a year for couples, but less than ten percent of Americans in a NY Times/CBS News Poll know it!
At the same time, half thought their taxes had remained the same, and one third thought their taxes had gone up! 🙁
The tax cut had been done by changing withholding rates, while when George W. Bush lowered taxes, he did it by sending a rebate check to taxpayers!
Apparently, the way taxes were lowered went by with taxpayers totally unaware, so the communication of the message was inadequate, and has not benefited the Democrats, who are still being accused of raising taxes by the Republican opposition!
A rebate had more political effect, but Obama felt that doing that would cause the money to be saved, rather than spent, when it came at about $65 a month in paychecks! The purpose was to stimulate the economy, as more important than thinking about the politics of a check in the mail!
So, unfortunately, the Democrats have been unable to benefit from their tax cut to stimulate the economy, which would be much worse if the tax cut through withholding had not been done! 🙁