Did you know that the "big new tax law" signed by President Obama yesterday "will save taxpayers, on average, about $3,000 next year," and that it will have "tax breaks for being married, having children, paying for child care, going to college or investing in securities"?
Don't spend that extra $3,000 yet, because it mostly won't be there. With the only major exception being the 2-point cut in the Social Security payroll tax, and of course barring new legislation the next Congress may take on, the tax laws for the next two years will essentially be the same as they have been since 2003, when Congress lowered marginal income, capital gain, and dividend income tax rates.
This lack of major change didn't stop the Ministry of Propaganda -- er, the Associated Press -- and reporter Stephen Ohlemacher from calling the new legislation "the most significant new tax law in a decade," when there's almost nothing "new" about it, or from trumpeting how much certain American families will "save" as a result.
Here are a few paragraphs from Ohlemacher's report: