Mendacity Alert!

The Mendacity Meter went off this morning as I was buying my double ham, egg and cheese croissanwich combo. On the radio I heard The Obamessiah Himself declare that working families will have less trouble dealing with their bills starting April 1 because the president's new tax cut is going into effect.

Static crackle. The Mendacity Meter needle rocked forward. I knew that my brain was in danger of exploding and I had forgotten my emergency duct tape. But I took a couple of deep breaths, the news guy on the radio started talking about the stock market, and the pressure in my head went back to normal.

Why did the meter go off? First, what is taking place starting April Fool's Day -- there are no coincidences -- is not a tax cut. Repeat: It is not a tax cut. It is a change in the withholding rates on workers. There have been no changes in the tax code. On April 15, 2010, unless Congress actually changes the tax rates between now and then, you will owe exactly the same amount of taxes on your 2009 income that you would have had not the withholding rate changed.

But Dave, you say, 95 percent of us were promised a tax cut, and Mr. Obama says this is it.

Well, if this is what he meant, either the president does not know what a tax cut is, or he is lying to you. I don't know how it can be said any other way. He's either ignorant or evil. I'll let you decide.

The reason "they" can get away with this is that most Americans over-withhold on their payroll deductions, which means they get a refund when they file their taxes. Back when I used to help educate people on such things, I would call it giving the government a short-term, no-interest loan. That's really pretty stupid, but there are professionals who actually encourage such behavior. If you are over-withheld, you do not have to fear the results of Mr. Obama's faux tax cut.

But if you are one of the smart people who would rather owe the government $50 at tax time, you may have an ugly surprise awaiting for you a year from now. Better do some recalculation, else this "tax cut" may bite you in the behind.

This isn't tax advice, by the way. Not my gig. Just a brotherly word of warning from someone who pays attention to his Mendacity Meter.