Soldier won't receive 'stimulus' rebate (03/07/08)

You'd better sit down.

And if you're prone to high blood pressure, you might want to check your medication.

Your blood is about ready to boil.

Ours did after a phone call from a local tax preparer.

The woman had been working with the W-2 of a soldier who had served for the past year in Iraq. And because of way the tax system works, most of his earnings are reported in a separate box on the W-2 to make sure they're not taxable earnings.

But in the box for "wages, tips, and other compensation" the figure entered for those in the service is essentially their travel money, the per diem their paid to get from one place to another.

Fair enough, you might say.

But here's the kicker: Because the figure in the box for "wages, tips, and other compensation" is below $3,000, the soldier won't be eligible for the much-vaunted tax rebate created by Congress and the Bush administration to stimulate the American economy.

Let that sink in for a moment.

The very people who are putting their lives at risk in uniform won't get the rebate unless their travel money topped $3,000.

If America's military were well-paid and adequately compensated, that would be one thing. But everyone knows the American military is poorly paid and inadequately compensated, so the only accurate word for the situation is an outrage.

And it's not only insulting treatment to those serving their country, it's bad economics as well.

If the rebate is going to have a stimulus effect, it's going to have to be spent.

Giving it to folks who are well off and can just put it in the bank doesn't do much good.

Giving it to people trying to get by on a military paycheck would virtually guarantee that it would be spent right away.

The tax preparer who phoned us was livid, and she had taken her complaints to IRS officials already.

Their response? Most were unaware of the situation and were nearly as upset as she was. Another insisted that there was a way around the problem, but his solution defied logic and perhaps IRS regulations.

"As many people as possible should know this," she said, her voice quavering with anger.

It is an outrage.

So, while you're blood is still boiling, get to work. Write your congressman, write your senators, and write the candidates seeking the presidency.

Let them know how you feel. - J.R.[[In-content Ad]]