> No, you're *not* right, you're dead wrong. Changing withholding rates
> has no effect on taxes--it just means that on April 15 you get less of a
> refund or pay more tax. Your annual tax bill is absolutely unchanged.
Many people don't bother to file their tax forms, which means they don't get back their refunds or potential credits, so changing the withholding rates actually does put more money in their pockets. Not enough money, of course, but that's another issue.
-- DRR