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Withholding Adjustment In Taxes Seen As Drop Into A Large Pool
President Bush’s plan to tweak the tax withholding schedule would put more money in workers’ pay now and less later. Experts say the effect on spending will be small and some warn of under withholding leading to big bills. The change, not requiring congressional approval, would take effect in months and is part of broader tax proposals. The Tax Foundation estimates an average annual tax burden reduction of $9,410 per filer. In 1991 about 80 million taxpayers saw $70 billion withheld in excess.
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