A recent post on Orthomom's blog discussing the proposed New York State tax credit for parents of students in failing school districts prompted a discussion about the value of a mere $500 when tuitions in exhibit and Day Schools have reached astronomical proportions.
Because it is obvious that some people do not understand the value of $500 to a family trying to juggle Yeshiva tuition with other necessary and prudent expenses. I stated that it is necessary to educate our communities regarding the value of $500.
While I may be an amateur blogger, I am an experienced home budgeter. Nearly every expense we make is readily available at my fingertips thanks to modern technology. So, in an effort to educate, I am going to share a bit about the prudent expenditures that our small family makes in terms of $500 (for simplicity I am looking at expenses between $400-$600). Obviously many of us can argue about what is necessary and what is unnecessary, so when I refer to our personal expenses I will term them "prudent."
- Six months of auto insurance for two (old and older) cars driven by two adults: ~$450.
- One year of dental insurance: ~$450.
- Two months of utilities: ~$500.
- Six months of property tax: ~$450.
- One month of grocery store, drug store (includes pharmacy), and gas station purchases: averages ~$450 per month.
- Six months of automotive repairs and maintenance for two cars: ~$500.
- One year of medical, dental, and vision (excludes pharmacy): ~$600.
- One year of life insurance premiums for my husband and me (with Hashem's help we will never need to use this insurance), combined premiums totaling about $1,000,000: ~$575.
In an effort to create some compassion for struggling families and the benefit a $500 tax credit could provide them, I've listed some of our expenditures in terms of $400-$600. I hope my readers (a growing list I hope) will share some of their necessary and/or prudent expenditures in an effort to educate people about how much $500 means to struggling parents looking to make ends meet. I hope after an examination of the value of $500, or even the examination of the value of $25, we can all become more compassionate people.
13 comments:
Excellent way of putting the proposed tax credit into context.
Now imagine if the $3,500 Golden-Lopez bill passes, that's 6.5 times more!
If this isn't an incentive to turn out at the rally in Albany a week from tomorrow, I don't know what is!
Interesting post! What does $500 buy in our budget -
* visit to the dentist for all the kids
* meat/groceries for the yomtovim (not everything but it's a good start)
* glasses for myself or husband
As you can see my list, like yours is very prosaic and basic. I'll take all the help I can get.
I'd consider going to the rally but need to work and have taken off too many days with Yom Tov as is.
Good post. Reminds me of Ann Coulter's constant reminders about the value of a "simple tax cut" - the Manhattan Elite often doesn't appreciate the value of $500 for us normal human beings.
It's important to remember that the $500 credit is only for families making less than $75,000. Let's not overstate the impact - most people will not be eligible for the tax credit.
Joe, please see my next series of 3 topics which will deal with your comment.
Jak--It is quite obvious that some of our own don't understand the value of a dollar to a struggling individual or family and we have the Torah.
The Manhattan elite have an excuse, we don't!
Your post puts things in perspective. Many people don't know the value of $500.
Where do you get car insurance for that little?!!
GEICO car insurance. I believe when we switched (it took much more than 15 minutes incidently) our premiums fell 40%.
Why our insurance is so inexpensive? One of the cars is pre-1990. We drive basically only locally. One car is not insured for theft (it isn't worth it). But, our liability is beyond the max.
And, of course, we don't live in an area with high, high rates.
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 your eligible for the credit, it will raise its tuition $500. As a school administrator or faculty member, I’d benefit from the $500. As a parent you’d benefit from the school’s ability to attract better professionals or provide better facilities. But 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.
Please see my latest post on tax tuition credits where I lambast a Rav for PUBLICALLY admitting that the parents are not going to be keeping the $500.
Lambast? Why? He was being honest.
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