I’m reading about the President’s “Tax Relief Plan” on a White House’s web site. Don’t get me wrong, I will take and appreciate the money, but let’s not get carried away about the impact it’s going to have.
According to the site:
“Real Tax Relief for Real Families:
When President Bush’s proposal is fully in place, the typical family with two children will receive at least $1,600 in tax relief. This is real and practical help:
- Sixteen hundred dollars will pay the average mortgage for almost two months;
- Sixteen hundred dollars will pay for a year’s tuition at a community college;
- Sixteen hundred dollars will pay the gasoline cost for two cars for a year; and
- Sixteen hundred dollars will buy an average family 24 months worth of electric power.”
Where in the world did these statistics come from?
- According to a recent article in USA Today the median mortgage payment is $1687.00. Other sites around the web arequoting $1700-2500 per month. This means that $1600.00 wouldn’t even pay one month’s mortgage for most people, let alone two.
- US News & World Report puts the average community college tuition at $2,300.00 per year. That’s 44% higher than the $1600.00 claim made on the site.
- The US Department of Energy says that the average vehicle travels about 10,000 miles per year. That’s 20,000 miles for a 2-car household. At the average fuel mileage of 24 miles per gallon, that’s 833 gallons a year. At $3.00 per gallon, that’s about $2500.00. So where are Bush’s advisor’s buying their gas if they can get by on $1600.00 per year for 2 cars?
- Even the electric bill estimate is rather optimistic. The average household in America consumes 10,656 kilowatt-hours (kWh) per year, according to the Department of Energy. At an average cost of 8.4 cents per kWh, the bill for 24 months would be $1790.00. Close, but still notably higher than $1600.00.
We appreciate the money, Mr. President. Really, we do. But overstating the impact will undermine the consumer confidence you’d like to inspire.
Every Monday night they play euchre. For money. For those of you unfamiliar with euchre, its a fast card game played with partners. Okay, it only cost a quarter to play, and you don’t stand to win much, but the game is fun and the players compete as if there were hundreds of dollars at stake. I won fifty cents.