Tax credit, food-stamp increase take effect today
Millions of Virginia will begin to feel the effects of the federal economic stimulus package today, as tax credits start to show up in paychecks and benefits rise for food-stamp recipients.
A tax credit amounting to $400 a year for most workers will benefit more than 2.9 million Virginians. The credit will reduce the taxes withheld from most workers' paychecks by about $13 per week this year and $7.70 next year. Today is the deadline for employers to begin implementing the credit as part of the American Recovery and Reinvestment Act.
The law, proposed by President Barack Obama and adopted by Congress earlier this year, also mandates a 13.6-percent increase in food-stamp benefits that takes effect today. In Virginia, the increase will benefit more than 608,000 people living in more than 280,000 households. Virginians will receive an estimated $355 million in additional benefits over the next five years.
The maximum monthly benefit for a four-person household will increase by $80 a month, from $588 to $668 under the change. The typical household receiving food stamps will see an increase of about $32 a month.
The program also will get a new name today -- the Supplemental Nutritional Assistance Program, or SNAP. The change will not affect the benefits of program participants.
-- Michael Martz
Reader Reactions
I just noticed how much they get. The increase allows those in the program to spend more on groceries each month than I do…. It’s good to know that only ‘the rich’ are going to be affected by this.
I work for the state goverment and did not receive my scheduled cost of living increase this past fall because of the budget problems. That’s OK, I understand the need for that. We have tightened our belt at home and groceries is one of the things that we are more cost conscious about. I have to say that it kind of feels like a slap in the face that as a state WORKER, I receive no cost of living increase, but those on food stamps do.
Maybe the extra $13 per week will actually help to feed my family - doubt it. With my spouse out of work and my income being the only source I still make too much money to receive any benefits like food stamps. While I’m out here working my fingers to the bone with cut hours mind you - someone else will get the benefit of my tax dollars - not myself or my family… Hope those who get them - appreciate them while my family struggles..
Dave, Don’t forget the IRS did not reduce your tax amount just what is being with held from your paycheck. That means next April you will have to come up with an additional $400.00 more dollars to pay for the money that was not with held all year long. The people with their hands out get more while we pay more. Sounds like good solid government Socialist logic to me.
For most people who really need the food stamp increase, it’s wiped out by the $.62 per pack tax increase on cigarettes. So they’re really getting no benefit.
As for that whopping $13 per week tax credit, I’ve already booked my trip around the world that I can pay for with it. In the new Obamaworld if I don’t earn $250,000 per year I can get around the world for $13 a week, right? It’s only those making $250K or more that would have to pay the actual cost isn’t it?
Obama is a joke.
My wages are frozen. My health care premiums are slated to increase 40-some percent next year. Utility rates are rising. I am going to get gigged on my real estate taxes either by the assessment or an increase in the tax rate. I could go on. I am not going to debate the food stamp program, but I want someone to explain to me the justification for a 13.6% increase in benefits. I’m helping to pay for those food stamps and I don’t begrudge those who get them, but 13.6%?
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