Most people don’t understand or try to calculate what their withholding tax exemption should be to pay the least amount to the Federal Government.  This is going to come as sneaky and stealth tax courtesy of the Democrat run Congress. It’s always been something I don’t understand about people. You don’t use payroll withholding as a way to save money in the form of a refund check.

This story started out because of letter military retirees received:

NO ANNUAL COST OF LIVING ADJUSTMENT (COLA) WILL BE ADDED TO MILITARY RETIRED PAY IN 2010.

DUE TO RECENT LEGISLATION YOUR FEDERAL WITHHOLDING TAX HAS CHANGED.

Turns out this doesn’t just apply to military retiree pay, it applies to all taxpayers.  Another thing to note for military veterans who use the VA in lieu of insurance. The new healthcare legislation is not going to allow you to go without insurance, using the VA doesn’t qualify as insurance so you’ll either HAVE to buy insurance or be fined by Big Brother’s police arm, the IRS. Get ready to assume the position.

Remember, this is coming from the party of Democrat legislators who don’t think they need to pay income taxes. Can you say Charley Rangel, Chris Dodd, Tim “the tax cheat” Geithner, Tom Daschel and the list goes on for Democrat tax cheats. But they want YOU to pay.

Go get the details of the Withholding tax table changes at Big Government – Congress Tinkers with Withholding Tax Tables for 2010

The trick, when looking at the new withholding tax tables for 2010 as compared to post-stimulus 2009, buries an increase in federal withholding taxes–for all income categories–basically giving the government an interest-free loan until current year taxes are filed next year. Some would blame the increase in withholding on the Making Work Pay tax credit being spread out over 12 months as compared to 2009, which was only over 9 months, but this would be impossible as some middle class wage categories carry an increase in the withholding tax of over $200 per pay period.

Withholding Taxes, Withholding changes 2010, Democrat corruption, military retirees pay