stupid tax cut
May 30, 2003 11:03 AM

You can tell when my feelings overwhelm my capacity for rational argument. I start to sound like a 12 year old (see "stupid tax cut" title today).

But I'm miffed by the content of HR 2, specifically, that it kept up the 2001 limitations on poor families receiving the child tax credit (see the NY Times explanation of the issue) after much discussion and promising to help working-class families. Aren't taxpayers in the $10-30K income bracket working-class?

Most congresspeople's response when questioned about the last-minute limitation of the child tax credit was something to the effect of "Geez, what do you people want, more money for poor people? Well, that's just insane!" What's most important in cutting taxes to stimulate the economy is to cut capital gains and dividend taxation, apparently.

I'm actually not infuriated by tax cuts related to investments. No, they probably don't directly stimulate consumption, but they could at least ice the bruises of the stock market temporarily. What irks me is that, given the opportunity to shave a couple hundred million off the cost of the bill, the first place the Republican house went is to stiffing the working stiff.

Of course, even the counter arguments (the ones FOR including the working poor in the child tax credit) are stupid and biased. Something to the effect of "Well, middle class people are spooked, so they'll save their $400, but working class people - man, they're so poor and confused, they'll run right out an buy a washing machine!" I'm sure the poor thank you for your high estimation of their judgement. Seriously, if you're making say, $15K a year post-tax, a few hundred dollars is a major windfall. It's bills you can pay on time, or a start to the rainy-day fund you always wished you could put aside. It's a chance you'll make a living wage that month.

But hey, you'll still get back 50 cents a payday. What's not to love?

Oh, and if you want to know how your congressfolk voted, visit Project Vote Smart. It won't tell you where they fell in the last-minute discussion, but it's useful.