Joe Poniatowski

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:

1. Sixteen hundred dollars will pay the average mortgage for almost two months;
2. Sixteen hundred dollars will pay for a year’s tuition at a community college;
3. Sixteen hundred dollars will pay the gasoline cost for two cars for a year; and
4. Sixteen hundred dollars will buy an average family 24 months worth of electric power.”

Where in the world did these statistics come from?

1. 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.
2. 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.
3. 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?
4. 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.