Rebate Used As Political Fodder

Seeking political capital from the federal income tax rebates, Republican congressional candidate Trent Matson traveled up Interstate 5 on Monday, praising the Bush-inspired law and criticizing Rep. Brian Baird for opposing it.

Matson, who next year will challenge Baird for the second time, gathered four local residents in front of the St. Johns IGA grocery store to celebrate rebate checks to 90 million Americans.

Before the day was out, Baird fired back that the rebates could later haunt Congress because the tax cut “is full of gimmicks and false math.” With the federal surplus eroding, a tax rebate is risky, he said.

Matson, outside the store at Fort Vancouver Way and St. Johns Boulevard, had each of the four Vancouver residents say how they plan to use their rebates — $ 300 to most taxpayers.

They included Tami Crombie, a single mother who will buy supplies to home-school her children; Sharon Lapham, who will vacation on the Oregon Coast; Tom McLeod, who will buy trap-shooting equipment; and Peter Tapio, who will landscape his yard.

They stood behind three grocery carts, the contents of which could be purchased for $ 300.

Better the money go back to taxpayers than be left in the federal treasury, Matson said.

“Keeping the snouts of pork-barrel politicians out of your pocket should be a priority,” he said.

He ticked off other aspects of the law, signed in June by President Bush, including an increase in allowable IRA contributions and cuts in the tax rates.

Then, Matson headed north to deliver the same message in Longview, Chehalis and Olympia, the principal population centers of the 3rd Congressional District.

Matson, of Olympia, lost to Democratic incumbent Baird, of Vancouver, last year and is challenging him again in 2002.

Monday’s series of events was just one example of how Republicans across the country are attempting to get mileage out of the tax rebate checks, which are being mailed starting this week.

The Washington Post reported over the weekend that the Republican National Committee (RNC) is working with state parties by shipping video sound bites to local TV stations, holding regional news conferences and promoting ways for taxpayers to spend the checks.

The RNC also has made a bumper sticker available to state parties that says, “Thank me for your refund. I voted for Bush.”

Washington state Republican Chairman Chris Vance joined in late last week with a statement saying that 2.06 million Washington residents will get tax rebates totaling $ 895 million.

“What a breath of fresh air,” Vance said. “The government is actually giving the American people some of their hard-earned money back.”

Another state group with heavy Republican leanings, Citizens for a Sound

Economy, joined the chorus, saying it has 300,000 members who “wish to say thank-you President Bush and thanks to those in Congress” who supported the legislation.

Matson, Baird disagree

Matson emphasized that the law goes beyond the immediate refunds to include general tax rate cuts, education breaks and phasing out the inheritance tax by 2010. He criticized Baird, who opposed the bill, as “a political elitist to whom ($ 300) may not mean much.”

Baird noted he has favored ending the marriage penalty and inheritance taxes. But, acting on a 10-year, $ 1.35 trillion cut “with less than two hours of real debate is not the way we should do the people’s business. It’s laden with gimmicks, and false math that will jeopardize the Medicare Trust Fund.”

Paying national debt?

Baird said Matson “is crowing about a tax cut based on a projected federal surplus that is evaporating before our eyes. As it evaporates, people will look toward borrowing from the Medicare Trust Fund, which is precisely what they said they wouldn’t do. If I were Mr. Matson, I’d be a little more cautious about that.”

Baird and most Democrats who opposed the tax cut argued that the money should go toward paying down the national debt and ensuring the viability of programs such as Social Security and Medicare.

Matson conceded the law needs some changes. But, he said, the bill is a start down the path of tax cuts blazed by Presidents Ronald Reagan and John Kennedy.

To those who have complained the cut was disproportionately favorable to the wealthy, Matson said, “It was equitably distributed. The highest (income) levels contribute the most (taxes) right now” and thus logically would get larger cuts.