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David Spates Since when does the So what's the catch? That's the first question I ask. If someone
tells you out of the blue that he wants to give you $500, aren't
you a little wary? No one -- not even people who are incredibly
irresponsible with money -- walks around handing out $500, so
there must be a catch. But that's what's happening. The U.S. federal
government, arguably the most financially irresponsible institution
in modern history, has decided that it has been taking too much
of your and my money, and it's time to give us back our change. But, like I said, I want to know what the
catch is, and I can think of no other example that better demonstrates
my (healthy?) mistrust of the government. I have become so suspicious
of my own government that even when it tries to return money
to me, I'm looking over my shoulder wondering when the gotcha
will hit. And this coming from the same guy who's written columns
demanding that the federal government return some of the budget
surplus to the folks from whence it came. The check is in the
mail, your taxes have been cut, and I'm still waiting for the
other shoe to fall. In case you aren't yet familiar with the details
of this historic move or if you're simply one of those people
for whom a newspaper's stories are nothing more than a blur en
route to the funny pages and horoscopes, allow me to summarize
as best I can from what I've read. The one aspect that has garnered most of the
attention is a provision in the law that made a retroactive tax
cut to Jan. 1, 2001, which means we taxpayers will be sent a
rebate to cover the cutback. In reality, this portion of the
law means relatively little compared to the other parts, but
it makes for good headlines. Besides, people like to get checks
in the mail, even though the check is a mere fraction of what
the government has wasted over the years studying the methane
output of cows and other equally questionable endeavors. Ninety-five million checks will start going
out in late July and will be sent to anyone who filed a tax return
this year. Singles will get $300, single parents will get $500,
and married couples will get $600. The law, signed Friday by W., cuts income
tax rates across the board, reducing the lowest rate from 15
to 10 percent and the highest rate from 39.6 to 35 percent. Of
course some politicians are bellyaching that wealthier people
will enjoy a healthier cut than middle-income people, but percentages
are percentages. Of course someone making $10 million a year
will save more money than someone making $25,000 a year. They're
called proportions, and I think I remember studying the concept
in the fourth grade. Maybe some of our distinguished elected
officials need a refresher course, unless they're simply manufacturing
political hay out of the issue. A politician wouldn't do something
like that, would he? Anyway, some of the law's provisions are phased
in over years, but eventually the move will double the child
tax credit from $500 to $1,000, reduce (but not eliminate) the
tax penalty of married couples and fully repeal the tax on estates.
All told, that will tally up to way more than the check we'll
be getting in the mail this summer, but that fact falls on deaf
ears for most tunnel-visioned folks who are looking for immediate
gratification, regardless of its actual impact. The Treasury Department says 38 million families
with children will save an average $1,460 a year, 43 million
married couples will save an average of $1,728 a year, and 11
million single mothers will save an average of $772 a year, once
all cuts are phased in, a process that will take up to 10 years. Sounds like good news for everyone, right?
So why am I still skeptical? After all, this isn't just pre-election
rhetorical promises designed to pile up chadless votes. This
is a post-election move. It's in the books. Down. In ink. Done
and done. The money's on the way, and the tax laws have changed.
We're getting money now and paying less later. Perhaps that's all there is to it. No strings
attached, no other shoes to fall, no surprise gotchas, no "Oh,
and one other thing ..." Maybe this is the day that I become
less doubtful of the government's motives. But I doubt it. · · · |