IF YOU SEND IT THEY WILL SPEND

In One Florida Town, Parents Getting Refund Checks Fulfill Bush's Hopes (MICHAEL JANOFSKY, 7/31/03, NY Times)

The refund checks have started arriving, and for many residents here, the $400-a-child tax credit, part of President Bush's latest effort to stimulate the economy, could not come at a better time.

Matt Ross, a father of two, said he intended to pay a few bills and, with school starting in a few weeks, buy new clothes for his children. Robert and Sharee McCutcheon, who also have two children, said their money would go for school supplies and Christmas presents. Roger Kintz, father of two girls, including an aspiring Olympic gymnast who is competing this week in Detroit, said his money would help pay for the trip.

Bridgett Bedwell, the mother of two boys, was thinking about her family dentist. "I'm fixing to have braces for my kids' teeth," she said. "That check really helps me out, especially when the braces are costing me $4,000."

Spend. Spend. Spend. This is precisely what President Bush and Republican lawmakers were hoping for in enacting tax cuts that included an increase to $1,000 from $600 in the tax credit for children. Against concerns about the rising federal deficit (now projected at a record $455 billion) or the cost of maintaining troops in Iraq (almost $1 billion a week), supporters of the tax cuts, which passed the House largely on a party-line vote, argued that a sluggish economy was best improved by Americans' keeping more of their money so they could spend it. On Friday, the Treasury Department began mailing out the first of more than 25 million checks, $400 for each child who was 16 or younger in 2002.

25 million checks. It's a good start. Posted by Orrin Judd at July 31, 2003 1:02 AM