What $500 won’t buy
New York State is proposing a $500 per child tax credit for “educational expenses”. Gotham Gazette had a good write up on the issue. It’s interesting how the “frum” community is buying into this as if it’s the best thing since sliced bread. “Orthonomics” has illustrated all the things that $500 can buy her family, though, oddly enough, many are not “educational” expenses.
Ms. Orthonomics, I’d like to share with you what “$500” will buy you. I’ll do it by way of the time-honored Jewish “mashal” (parable), except that this story is real.
My wife and I used to garage a car in Manhattan. It would cost hundreds of dollars, including taxes of about 25%. “But”, if you were a Manhattan resident “and” you garaged monthly, you could apply for an exemption for part of it. So, Mrs. Moreh and I wrote away for the form, which arrived a few weeks later, filled it out and mailed it away. A few weeks after that, a “certificate” arrived. We were to take this coupon to the garage we told the city we use and they would stop collecting part of the tax. Great. There was one catch, though. The certificate could only be used at the garage we named. If we were to change garages, we’d have to start the process all over again and re-apply for a new certificate. This small matter would come to bite us real soon. About a month after we filed the certificate with the garage, we received a form letter from the parking company: “Due to circumstances beyond our control, we must raise your rent.” Oddly enough, the rate of increase was too close to the “tax break” we had just received to have been a co-incidence. We asked around and our friends confirmed that this was a common scam, excuse me, “practice” in the industry.
That, “Orthonomics” is what “$500” will get you. As soon as your kids’ school learns that you’re eligible for the credit, it will raise your tuition by $500. As a school administrator or faculty member, I’d benefit from the $500. As a parent you may benefit indirectly, from the school’s ability to attract better professionals or provide better facilities. But for you, directly, that $500 will net you nothing.
Oddly enough, for a public school parent, where no tuition money changes hands (directly) between parent and school, parents may well have a choice of where to spend that $500.
But wait, lady. This program will cost the state millions of dollars. Do you think that the state can just print money or snatch it out of thin air? Nope. The state raises the money from taxes or fees. So, somewhere along the way you’ll be paying for the privilege of having your kids’ tuition raised.
Hope you’re happy.
Ms. Orthonomics, I’d like to share with you what “$500” will buy you. I’ll do it by way of the time-honored Jewish “mashal” (parable), except that this story is real.
My wife and I used to garage a car in Manhattan. It would cost hundreds of dollars, including taxes of about 25%. “But”, if you were a Manhattan resident “and” you garaged monthly, you could apply for an exemption for part of it. So, Mrs. Moreh and I wrote away for the form, which arrived a few weeks later, filled it out and mailed it away. A few weeks after that, a “certificate” arrived. We were to take this coupon to the garage we told the city we use and they would stop collecting part of the tax. Great. There was one catch, though. The certificate could only be used at the garage we named. If we were to change garages, we’d have to start the process all over again and re-apply for a new certificate. This small matter would come to bite us real soon. About a month after we filed the certificate with the garage, we received a form letter from the parking company: “Due to circumstances beyond our control, we must raise your rent.” Oddly enough, the rate of increase was too close to the “tax break” we had just received to have been a co-incidence. We asked around and our friends confirmed that this was a common scam, excuse me, “practice” in the industry.
That, “Orthonomics” is what “$500” will get you. As soon as your kids’ school learns that you’re eligible for the credit, it will raise your tuition by $500. As a school administrator or faculty member, I’d benefit from the $500. As a parent you may benefit indirectly, from the school’s ability to attract better professionals or provide better facilities. But for you, directly, that $500 will net you nothing.
Oddly enough, for a public school parent, where no tuition money changes hands (directly) between parent and school, parents may well have a choice of where to spend that $500.
But wait, lady. This program will cost the state millions of dollars. Do you think that the state can just print money or snatch it out of thin air? Nope. The state raises the money from taxes or fees. So, somewhere along the way you’ll be paying for the privilege of having your kids’ tuition raised.
Hope you’re happy.
posted by Ben Sorer Moreh at 8:20 PM
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