Free Republic

Some economic facts of life are obvious. You can’t take money out of a bank account unless someone has put money in it. You can’t get a rebate on a product if you don’t buy it. You can’t take advantage of lower interest rates if you don’t take out a mortgage. Only in Washington, D.C. can basic economic truisms be turned on their head. That’s the case with the expanded child tax credit. Less than a month ago, Mr. Bush signed a multibillion dollar tax cut that will issue checks of up to $400 to most middle-income families. The reimbursement...

Mon June 9, 2003 04:03 PM ET WASHINGTON (Reuters) - President Bush would sign a bill ensuring that low-income workers benefit from an increase in the child tax credit if the U.S. House of Representatives follows the Senate's lead and passes the measure, the White House said on Monday. White House spokesman Ari Fleischer said Bush wants the Republican-led House to pass the bill quickly so he can sign it into law. "He understands they're going to take a look at some other tax matters. That's their prerogative," Fleischer told reporters. "But he wants to make certain that this does...

The Democrats want to extend the Child tax credit to those with low incomes. They argue that the working poor do pay taxes in the form of payroll taxes. But to refund the payroll tax is to robbing the Social Security "trust" fund of needed cash. The poor are the primary beneficiaries of the social programs so they must bear the responsibility of paying the premiums. So, the new rallying cry should be "Don't starve old widows -- leave the Social Security "trust fund" alone -- Don't cut payroll taxes!"