Another article on this
Here.
A lot of good analysis here, but this is particularly interesting:
...But back to the implications for the labor market. In the last two months, "withheld receipts jumped 12.5 percent annualized," Wiegand said. "The message is, there is no way that you can see withheld income taxes rising unless there's a decisive turn in labor market conditions, including payrolls, hours and compensation."
The refund story and final tax payments aren't as straightforward as withholding taxes, according to Doug Lee, president of Economics From Washington in Potomac, Maryland.
"We really don't know how many people got caught by the AMT," or alternative minimum tax, Lee said. "But the withholding portion is strong. So is wage and salary growth. Both are inconsistent with the payroll data."
Tax withholding is a direct measure of payroll employment, or at least of hours worked. Some more encouraging news.
