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Letter to the editor: The problems with tax increases

Published: Monday, November 22, 2010

Updated: Tuesday, November 23, 2010 01:11

At a time when the country is engaged in serious debate over our economic future, Hana Suckstorff's column ("What's the big deal with paying taxes" Nov. 16) on the merits of paying taxes is appropriate for discussion. Not knowing the specifics of the particular ballot initiative she cited, we write not to comment on the will of the voters who participated in that decision, but rather to address broader questions about paying taxes.

Certainly, government has the right in some cases to tax citizens, but to what extent? Thomas Jefferson wrote, "Taxes should be proportioned to what may be annually spared by the individual." Americans largely recognize the need for tax revenues to fund a government to perform its constitutional duties, but how much an individual may spare and for which endeavors are debatable.

Suckstorff also hits an important point about deficits for federal and local governments. Tax increases could help pay for those deficits, but not if spending levels continue to outpace tax revenues.

Historical spending levels do not offer much indication that increased revenues would be used to decrease the deficit instead of to increase spending. Perhaps this is why many voters reject tax increases that Suckstorff seems to find trivial. There is also another problem with tax increases. A majority of small businesses in this country, which provide most of the jobs in places like Suckstorff's hometown of Troy, pay their federal income taxes at individual income tax rates. These rates will go up from 35 percent to 39.6 percent on Jan. 1 if President Obama and Congress do not act to stop this tax hike. This increase in taxes will invariably mean that employees will have to be let go. So to answer the question "What's the big deal with paying taxes?" the big deal, which President Obama starkly learned a couple Tuesday's ago, is simple: Jobs.

—Shil B. Patel

Communication ‘07,

Former President, NU College Republicans

—Josh Branson

McCormick ‘07,

Former executive board, NU College Republicans

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