Taxes-Period+3

FISHING FOR RED HERRINGS For your group's assigned topic below, read one or more of the articles provided, then use the Times Topics pages to find more articles that address this issue and how it has played out in recent news. Work to both understand the larger issues as well as to identify a "microcosm" of the issue—such as a person involved who people can relate to or focus on, like Bernie Madoff, or a small part of a larger problem, like the A.I.G. bonuses—that you can use to "sell" the issue to the public.


 * Issue: TAXES**

· Times Topics: Tax Credits []

· Times Topics: Taxation [|http://topics.nytimes.com/top/reference/timestopics/subjects/t/taxation/index.htm]

· Times Topics: Tax Evasion []

· Selected Related Articles: "So Who Picked Up the Tab?" [] "In Tom Daschle’s Woes, A Peek Into How Washington Works" [] "Geithner Questioned on Tax Returns" []


 * ISSUE BACKGROUND**


 * __Why are people upset over taxes:__**
 * Current tax laws encourage the "rich get richer" mentality
 * Taxes on the wealthy have dropped significantly over the last 20 years, from 28% on capitol income to ~15%.
 * Only the wealthy can actually take advantage of many tax loopholes. Hedge fund managers risk money on investments, and face lower taxes on successful investments, but only people with a lot of money can make use of hedge funds.
 * Tax breaks given to businesses to "create jobs," but very few jobs are actually created.
 * Tax reforms are difficult under current legislation, and many bills that could benefit the majority of Americans are often turned down in the house or senate.


 * __Example issues:__**
 * The Republican no tax pledge.
 * Congress almost shuts down because it can't create a budget that both parties can agree to.
 * Mounting economic debt.


 * POTENTIAL MICROCOSMS**