I’ve never been well-to-do. When I attended DU, I was dependent on need-based financial aid.
Most students know the drill – the FAFSA adds up what they think you can afford and Financial Aid staffers provides the rest. But in many cases, they overestimate how much your family can pay. I had to get a part-time job. The second year, they figured since I had a job, I could pay more. They reduced my aid, so I had to work more.
By the time I was done, I had a full-time job and was still struggling to pay. I thought it was unfair. I didn’t understand. This “aid” scheme was keeping me down.
Unfortunately, our national tax policy was designed the same way decades ago. A graduated tax punishes earning power, discouraging productivity – people work harder to make less.
But President Bush’s proposed tax reductions, if not derailed, offer the promise of some relief, as well as a solid recovery for our troubled economy.
Does his plan favor the rich? Well, the rich will save higher dollar figures, but the top 50 percent of earners ($70,000 and up) still pay 96 percent of the taxes. The rich will save more from tax reduction, but they’ll still be paying incredible sums at rates two or three times what you and I pay.
Besides, it’s ultimately the rich – business owners and investors – who provide jobs for the rest of us. A tax cut enables them to increase their investment in you and me. That’s what’s really going to pull us out of recession – more people getting jobs.
As the long-term benefits of this stimulus package kick in, everybody will be making more money. That increased revenue is certain to bring economic vitality and eliminate the deficit.
The fact is, Bush’s proposal will cut your taxes, if you pay any taxes at all. This tax reduction, just as in 2001, increases the standard deduction, which will benefit you and every other taxpayer. It’s a fair proposal for taxpayers at all points on the spectrum.
I’m not rich. That’s why I need my taxes cut. Extra hundreds of dollars will help me a lot.