Questing for Atlantis

People have been claiming this presidential election is about many things. For a while it was Iraq. Then it was energy. Now it’s about the Wall Street bailouts. However, there is one issue that rises above all of these in importance, but far too many have failed to realize it.

That issue is taxes. In a way, it’s always been about taxes. America was founded on opposition to taxes equaling one half of one percent of income. Now we pay upwards of 30% and consider ourselves lucky.

That amount could be going higher though. Since 2000, a series of tax cuts were passed that radically revolutionized the U.S. economic system. They fueled economic growth by saving the taxpayers over $1.3 trillion dollars to date.

These benefits extended to people of all incomes, all the way from the bottom to the top. Unfortunately, those benefits may not last.

As a concession to their passing, President Bush and Congressional Republicans were forced to accept a series of sunset clauses on the cuts. Because of this, without an extension of the tax relief all the tax cuts will phase out in 2010.

It is because of this that taxes matter so much this election. Congressional Democrats like Harry Reid and Nancy Pelosi have made clear they will oppose any efforts to make the tax relief permanent. With a Democrat president, odds are they’ll get their way.

They claim to oppose the tax cuts because they only benefitted “the wealthiest people in America.” That fact is demonstrably false.

The Bush tax cuts took 6 million households off of the income tax rolls and expanded the child tax credit for low-income families.

Furthermore, the tax relief shifted the burden of taxation more heavily onto the top earners. According to the U.S. Treasury Department, in 2005 the top 5% of income earners in America paid 16.1% more of total taxes than they did in 1990. Allowing this tax relief to lapse would shift the burden off of them and back onto those least able to afford it.

And speaking of these supposed fat cats, just who are they? Based off of tax returns, 74% of the top income bracket is actually small businesses that file taxes as individuals.

These aren’t millionaires; they’re entrepreneurs, men and women living the American dream and creating jobs for millions of people across the country. Without the tax cuts, many will be forced to raise prices or lay off employees.

The increased costs don’t stop there. Typical families will be paying $500 more per child and even more with the marriage penalty. As much as college costs today, why on earth should families be forced to have even less to pay it with?

This is why taxes matter more than ever this year. Democrats have pledged to let this tax relief expire, at a time when America can least afford it. Letting taxes resume their pre-2000 levels will cost all Americans.

Not only will more Americans be paying taxes, and at higher rates, businesses will be raising prices and cutting jobs to cope as well. And all of this when the economy is as weak as it is.

We simply cannot afford to let these tax cuts expire. It will cost us, especially as college students. It’ll cost us when our parents have less money. It’ll cost us when we have less money. And it’ll cost us when there are fewer jobs once we graduate.

So before you cast your vote, think past November 4th. Think past it to April 15th when the Taxman cometh.