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VIRGINIA GAZETTE

 

 

 

 

WILLIAMSBURG, VIRGINIA

Tax Cut Just Doesn’t Cut It

 

 

 

June 23, 2001

 

 

 

 

 

 

 

On June 12, the Daily Press published a letter from Rep. Jo Ann Davis (R-1st), and I couldn’t have been more pleased with what she had to say. She had attended a ceremony at the White House, where president Bush signed the largest “tax relief” bill in “20 long years.” Now, the fact that Davis was hobnobbing with the president delighted me no end, but beyond that, I was impressed by her logic in support of the tax cut.

 

She begins by saying that the cut is “good for America, as well as the Commonwealth of Virginia.” I’m not sure whether she considers the commonwealth something quite apart from America, or whether what’s good for America is good for Virginia, which used to be part of America. Her point was that, as a result of the tax cut, both America and Virginia will benefit in four areas: rate reductions, child tax credits, marriage penalty relief, and a phase-out of the “death tax, which used to be called the “estate” tax. But the Republicans think death is a more horrific thing to tax than estates, and they’re probably right.

 

Davis says that all of this will save Virginia alone $28.6 billion over the next 10 years, and that is certainly good news. How this is going to happen, however, she doesn’t say. What she does say is that all of this will help families get out of debt and fuel our local economy, and that’s certainly a positive effect. But, to keep her letter brief and upbeat, Davis doesn’t get involved in a maze of facts that might clutter up her very positive presentation. She doesn’t mention that lower tax rates won’t go into effect until 2006, that the provisions relative to the estate tax and child tax credits won’t become operative until 2010, or that the benefits for married couples won’t emerge until 2008, by which time the whole new tax code will probably be reviewed with the idea of sending us back to square one because we simply can’t afford all these cuts that she and the president so carefully worked out.

 

My problem is that I’m a single taxpayer, and hence won’t be affected by child tax credits and marriage penalty relief. Nor do I expect to inherit some whopping amount of money or real estate on which I would have to pay the death tax. What I’m left with is a minimal reduction in my tax rate in 2006 and a tax rebate of up to $300. Yet this is what will allow me to participate in Davis’s notion of “fueling our local economies.” Perhaps now I can really get serious about that Jaguar that I’ve always wanted, or maybe one of those expensive properties over in Port Anne. Both always seem just out of reach to the tune of up to $300. In fact, salesmen and real estate agents are always telling me that, if I could only come up with up to $300 more, the car and the property would be mine. But every time the gasoline bill or the electric bill comes, the elusive $300 seems to disappear. However, these are the types of corporations that keep our government in the right hands, so I really can’t complain, and especially now that Davis and her cohorts will be sending me my check for up to $300 sometime in September. Then I can show the local economy what fueling is all about! Indeed, Davis comes right out and says that I should enjoy more of my money, and that I can use it in any way I choose, which I thought was mighty generous of her.

 

Davis then sails into those who oppose tax cuts as wanting “the government to spend the extra tax funds on more government.” Again, opting for brevity, she doesn’t explain what she means by “extra tax funds,” nor is it clear what “more government” means, though I suppose she’s referring to non-essential programs run by the federal government, such as Head Start, The National Endowment for the Arts, environmental programs, and the military. All of these have thankfully undergone cuts so that I can get that jaguar. And in this Davis and I seem to be in the majority, since she tells us that “people in the First District have overwhelming stated that they have been overcharged by the government.” Oddly enough, she never got such a statement from me. I must have been out of town when she was talking to everyone else in the district. Or perhaps she took some scientific poll that I missed. At any rate, we all know that politicians don’t go wonky with figures and that we should take what they say to be gospel. So I believe her and am delighted to be a member of such a marvelous, farsighted majority.

 

In her fourth paragraph, however, Davis loses me. She writes, “once the bills are paid and our spending priorities such as rebuilding our military, strengthening Social Security, and paying down the debt are met, we must return the change to the American people who earned it.” If all these things are yet to be done, why am I getting that up to $300 so soon? If we haven’t paid the bills or haven’t met our spending priorities, I probably shouldn’t be eyeing that property over in Port Anne. If Social Security and the military are going down the tubes, why am I the recipient of such largess?  Perhaps this is her way of telling us that these tax breaks aren’t really going to occur until 2008 or 2010, by which time our priorities will have been dealt with, and we can siphon off the “change” to the taxpayers who earned it.

 

But I’m not here to debate minor points with my esteemed representative. Rather, I am thankful for Davis’ letter of encouragement, and I for one am going to take that up to $300 and run with it.  

 

Lewis Leadbeater is professor, emeritus, of Classical Studies at the College of William and Mary. 

 

 

 

 

 

 

 

 

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