....provides a tax stimulus for waage earners. Federal withholding is
reduced to produce an immediate increase in take home pay. To insure
that 'most' taxpayers don't have to pay more taxes at the end of the
year, they become eligible for a credit at the rate of 6.2%...yada,
yada, yada.

But...the credit does not apply to retirement income, even though the
payees of the retirement income are required to apply the withholding
change to the retirement payments.

Of course, this means many retirees will have too little withheld and,
as a result, be required to pay more taxes when the 2009 return is
due.

But, Obama has come to the aid of retirees. They are allowed to
*increase* their withholding amount to offset the underwithholding
mandated by Obama to make everyone feel good.

The IRS has even come up with a new notice to help those making
pension payments:

Notice 1036-P Internal Revenue Service (May 2009)
Additional Withholding for Pensions Earned Income Credit Payment
Tables, which reflect the Making Work Pay credit. Eligibility for the
credit requires for 2009 earned income, which does not include pension
payments.

..... "This procedure is optional for those making pension
payments subject to withholding under section 3405 of withholding on
the Internal Revenue Code. The procedure is an
approximate offset for the withholding reduction included the
in the February 2009 withholding tables found in the desired or
Publication 15-T, New Wage Withholding and Advance Earned Income
Credit Payment Tables, which reflect the Making Work Pay credit."

Isn't big government great?
--

John H

"My reading of history convinces me that most bad government
results from too much government."

Thomas Jefferson