Obama's Proposal for Paycheck Taxes

When Obama was campaigning, he proposed to cut our payroll taxes so that we take home the equivalent to $500 more a year for individuals and $1,000 for couples. Basically, he would have our employers reduce the tax withholding on our paychecks.  

It is limited to those making $75,000 or less ($150,000 or less for couples).  If you make between $75,000 and $85,000 then you receive partial credit ($150,000 and $170,000 for couples).

Now you would not receive all this money at once, for instance, if you are single and receive a paycheck every two weeks, then your $500 tax break amounts to $19.23 extra a paycheck.

The Tax Policy Center estimates that the cost of this would be $115 billion over two years.  The total expected cost of the stimulus is expected to be around $800 billion.  We are already in a deficit that could reach $1 trillion before this stimulus is even started.

Analysts found that of the $100 billion in stimulus checks sent out earlier this year, most consumers saved the money instead of spending it.  And now, Obama wants to add this other package totalling $115 billion - the only main difference is giving the money out in small doses, rather than all at once.  

How do you feel about the tax rebate?  Do you think it is significant enough to make a difference?  Is the cost worth it with our deficit already being so high?