Withholding Rates Under Tax Reform

As an employer of two lower-wage-bracket employees in a small business, I received the new revised withholding schedule for 2001, which became effective June 30, 2001, replacing the Jan. 1, 2001, schedule. The accompanying notice to employees, which I am instructed to post, states that the new schedule would probably reduce the amount of income tax withheld.

However, the withholding tax for one employee jumped from $35 to $83.58, and for the other, from $42 to $104.73. This represents an approximate 150% increase in a six-month period.

Where is the lowering of taxes promised? Am I missing something, or isn’t there something very wrong here?

Janice P. Russell

Downey

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I just received my first paycheck that reflected the new tax rates that went into effect July 1, 2001, the result of the Bush tax cut. My family will get a few dollars more each week. But rather than spend these dollars, we’ve decided instead to try to make up for the amount our stock portfolio has lost since the man who prevailed in the court cases after losing the last presidential election took up residence in the White House--instead of the man who actually won the election.

Unfortunately, given the magnitude of the stock market declines, and the paltriness of the supposedly huge tax cut, it will take 113 years to recover the lost value. I can hardly wait.

David S. Larson

Los Angeles

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The $300 I will receive as a tax refund will amount to 82 cents a day for the year. I would be more than willing to forgo a cup of coffee a day or a banana. I would like to know to which agency I could send the $300 to go only for the purpose of reducing the national debt. I am sure that if citizens of the U.S. had this option and privilege many would do the same.

Levi Steinberg

Santa Monica