Death and taxes: The only certainties in life

By: Freesia Singngam

Posted: 11/3/08

Benjamin Franklin is responsible for the famous quote, "In this world, nothing can be said to be certain, except death and taxes."

He wrote this in a letter right after the establishment of the Constitution, and 219 years later, as the nation continues to interpret and reinterpret the Constitution and the limits of governmental power, his quote still holds true.

Candidates, for years, have run on platforms of lowering taxes, and for years, this has appealed to voters. No one likes to pay them, but taxes are inevitable. They're necessary to cover the cost of various programs, including public education and municipal public works. Right now, they're necessary because the nation is burdened with an enormous debt, and it's in a state where banks and businesses are failing and need to be bailed out.

Americans are currently facing an especially difficult time because the economy is in a recession. They're losing their jobs as businesses are suffering from falling stocks and failing loans, and the last thing hard-working Americans want to do is share what earnings they've made. No one in power in either our federal or state governments actually wants to tax those who are in trouble financially, but this is a catch-22 situation - with more people in bad financial situations, the government steps in more to provide aid for them and the businesses that employ them.

As we near the presidential election, it is crucial to understand the economic policies and tax plans of the candidates. It is important to decide which plans are actually feasible, and which ones will help the nation as a whole.

Republican presidential candidate Sen. John McCain (R-Ariz.) and Democratic presidential candidate Sen. Barack Obama (D- Ill.) have both advocated new health care plans, which both sound very government-subsidized. McCain has said he would like to give $5,000 back to people to choose their own health care plans and leave regulation to the states. Obama has said that health care is a right that all Americans should have.

When some of the nation's biggest lenders went bankrupt as stocks fell and brought on the biggest economic crisis in years, Congress passed a $700 billion bailout. Both candidates have plans to ease the economic crisis that include temporarily eliminating taxes on unemployment benefits. McCain wants to "buy bad mortgages and renegotiate loan terms based on the current value of home" and "convert failing mortgages into low-interest, FHA-insured loans," according to CNN.com. Obama wants to "give temporary tax credit of $3,000 in 2009 and 2010 to companies for each new full-time employee it hires in the United States."

On top of these huge expenses, the United States is currently engaged in the War in Iraq that has cost the nation billions of dollars. Obama has proposed drawing down troops in Iraq to help close the budget deficit. McCain has made it clear that he wants to keep fighting the war.

How is the government supposed to pay for these health care plans without taxing people? How will they pay back the huge debt they now owe after the bailout? How will they pay the difference after they lose money from these tax credits? How is the war still being paid for? There's not a secret pool of money anywhere, unless, of course, you look at the American people. Historically, taxes have paid for things when the nation was in need. This is one of those cases.

McCain wants to keep the 2001 and 2003 personal tax cuts permanent and "repeal the Alternative Minimum Tax, the so-called 'wealth tax,'" according to CNN.com. Obama wants to leave all tax cuts the same with the exception of raising taxes by a few percentage points for couples making more than $250,000 a year and single filers making more than $200,000 a year while giving a tax break or lowering taxes for households making less than that.

McCain wants to increase the amount of money exempt from the estate tax to $5 million and lower the rates, while Obama wants to keep the estate tax cut-off at $3.5 million and keep the rates the same. McCain wants to reduce the corporate tax rate, while Obama says he would consider lowering it.

The McCain campaign has bashed Obama's tax policies and said that small businesses can't afford Obama's tax plans. Obama has specific levels of taxation for specific incomes because those who make more money can afford to pay taxes more than those who don't. McCain says the tax cuts can be paid for with new jobs in clean energy that will boost the economy. When will the nation have these jobs? Will it not take a long time to take effect and actually make a difference in the economy? Can the nation afford everything McCain plans on doing - can America afford those tax credits for health insurance - when McCain wants to lower taxes on businesses and those earning over $5 million a year?

The answer is no. Adding to the old death - and - taxes adage, you can't have your cake and eat it too. The only way to better our nation and avoid another Great Depression is to help those who are suffering from the economy. It's to help those who need a boost because everyone wants success. Otherwise, there will be more poverty and loss of jobs, and with that, more injustice.

Some argue that it's socialist or un-American to fund so many programs because the United States is a capitalist nation. The fact is, the United States values freedom and opportunity. The government has been passing legislation and funding programs to help citizens in need for years. People need jobs, and they need health care. If the government can help them attain these basic necessities, and they have, they're facilitating the freedom and democracy of the nation, and that's very American. The government needs to fund programs, and the people need to pay taxes to benefit from them. That is certain.