The following is from the text of a memo that was attached to the payroll details for all city employees, from the legal department.
MEMORANDUM – March 19, 2009
Please be advised that as part of the American Recovery and Reinvestment Act of 2009 a new tax-withholding table has been released and must be implemented by the City of Albany by April 1, 2009. For most taxpayers the newly released tax-withholding table will result in less money being withheld from your paycheck each week for tax purposes. Thus, most employees will see a slight increase in their paychecks each week.
However, please be further advised that as of today’s date the government has not adjusted the tax brackets which determine the amount of taxes that will be owed by the tax payer each year based on their annual salary. Therefore, the adjustment of the tax-withholding table may increase your tax liability. This liability can be offset by having additional money withheld from your paycheck each week.
The “tax decrease” stimulus is stunning in it’s deception, isn’t it? I can’t really say anything else about this.