Let’s talk pocketbook issues. I have children who will need funds for college. Both Bob Dole and Bill Clinton are offering tax cuts or credits to sway voters in the 1996 presidential election.
Bob Dole is proposing an across-the-board 15 percent income-tax reduction, a $500-per-child tax credit and a capital-gains tax cut. Bill Clinton has countered with a proposed $1,500 tax credit for college tuition. How do these two proposals stack up? The Clinton plan certainly sounds nice on the surface, but for many of us who have young children, college is still many years into the future.
On the other hand, if I merely invest the tax savings from the Dole plan (the 15 percent income-tax cut and the $500-per-child tax credit), I will build up a substantial college fund by the time my 6-year-old reaches college age. The capital-gains tax cut will further boost my savings by allowing more of my investment to grow without a large annual tax bite.
In truth, there is no comparison. The Clinton plan would merely provide a paltry tax credit when, and only when, I actually pay for tuition. It does nothing to help me save for college in the meantime. It’s merely a bone tossed to the middle class to buy their votes.
The Dole/Kemp plan allows me to save thousands of dollars for college expenses, and it’s help I can use now.
