(. 4A - Monday, March 23, 2009 )pinion The Michigan Daily - michigandaily.com 7 1C 44 i tgan Batl Edited and managed by students at the University of Michigan since 1890. 420 Maynard St. Ann Arbor MS 48109 tothedaily@umich.edu GARY GRACA ROBERT SOAVE COURTNEY RATKOWIAK EDITOR IN CHIEF EDITORIAL PAGE EDITOR MANAGING EDITOR Unsigned editorials reflect the official position oftthe Daily's editorial board. All other signed articles and illustrations represent solely the views oftheir authors. FROM THE DAILY Joining ObamaCorps Studentsshould accept responsibility of community service President John F. Kennedy's famous words, "Ask not what your country can do for you, but what you can do for your country," are still relevant 50 years later. The House recent- ly passed the Generations Invigorating Volunteerism and Educa- tion Act, which focuses on improving education, green energy and health care through community service programs - specifically, the federal service organization AmeriCorps. While the U.S. Sen- ate should work quickly to pass similar legislation, called the Serve America Act, currently under consideration, students should rec- ognize the value of community service in a time when communi- ties threaten to buckle under economic stress. 0 The GIVE Act, which was passed by the House on Thursday, will expand the Ame- riCorps program significantly and increase education stipends. AmeriCorps will be expanded to 225,000 service positions, an increase of 300 percent. The education stipend provided for student volunteers in AmeriCorps will also increase to $5,350, the same amount as the maximum Pell Grant. This is expected to cost the govern- ment $6 billion in the next five years. The bill is also proposing that Sept. 11 be made a national day of service, though it would not be a national holiday. Most importantly, the bill aims to use community service initiatives to improve three areas that President Barack Obama has repeatedly stressed: education, green energy and health care. Though the fed- eral government, under Obama's guidance, has recognized its responsibility to solve these issues, these three areas aren't just important because Obama says so - they are critical for reviving the nation's slowly sinking economy and diminishing condi- tions of poverty. Because the act is focused on pressing issues, this new initiative is a good way to encourage people to volunteer in local communities. Education in underprivileged commu- nities is one way to bridge socioeconomic gaps and is vital to redirect manufacturing- based economies not only in Michigan, but also nationally. In the same vein, progress in alternative energy technology will open up a booming industry that protects the envi- ronment. And, of course, improving health care services are vital for solving issues that underprivileged families continuously face. The Senate needs to support the House's bill to make sure these projects become a reality. But the government's efforts to support community service won't amount to much unless students take advantage of them. The expansion of AmeriCorps is a prime opportunity for students to give back. While the economy struggles, students are among the few groups of people with the time and opportunity to serve. And while students should always heed the call to ser- vice, what's also true is that service may now be more viable for many students than getting a job after graduation. Creating a national day of service is a nice gesture, but no one should be waiting around for an official call to go help suf- fering communities. Students especially should take it upon themselves to make giv- ing back a priority, regardless of whether it's timely or not. The least I can say is that he's a poor ignoramus." - Venezuelan president Hugo Chavez, commenting on President Obama's allegation that Chavez is responsible for exporting terrorism, as reported yesterday by CNN. CHRIS KOSLOWSKI T T PAT E-MAIL CHRIS AT CSKOLOW@UMICH.EDU Noooo My brcked! I thoet Barack ek I es BUaTe! thoi work JlsagWho Makes the Best Picks for Mmeto C seld teD'the NCAA Tournament? \Wy WakeFores w?V O.LL 6 IBosmwn Colee?J Youi & QBaby'with 0 C 0 0 SPN 0 0 ®0b Analyst Baywh " ~~BaywihCa o Cra . r Taxation frustration I always tell my students that the half is a tangled thicket of provisions If you don't have health insurance, best way to learn about American collectively known as tax expendi- can't afford to contribute to a retire- public policy is to do their own tures. Once you hire a jungle guide ment plan and can't afford to buy your taxes every year. or an accountant to take a machete own home, you don't see a dime in Filling out your to the torturous language, you'll find benefits from these programs, which own tax forms a bunch of goodies that let you pay cost the Treasury Department rough- shows you what fewer taxes. Three of the most com- ly $300 billion last year. our society's pri- mon goodies are deductions, exemp- orities are and tions and tax credits. precisely how your In general, deductions and exemp- personal income tions allow you to reduce the amount W hy the rich get is going to fund of your income that is subject to tax, it. If you don't pay while credits directly reduce the tax off too easy when attention to those PATRICK you owe. debates, the people O'MAHEN Collectively, these tax expendi- it comes to taxes. who do - and their tures reduced federal revenues by lobbyists - will be $800 billion last fiscal year, according more than happy to the Tax Policy Center. to rewrite those laws to their benefit Guess what? That $800 billion dis- Now, one can argue that some of and your detriment, proportionately goes to the wealthy. these programs help middle and low- If you're interested in justice, or Perhaps the most egregious exam- income people to buy their own home just getting your fair share of deduc- ple is the Bush-era cuts on dividends or save for retirement. That's true, but tions, take your federal 1040EZ or and other capital gains. Since few because of high or non-existent caps 1040A forms and follow me as we Americans directly own stock, gener- on the benefit, they tend to provide plunge into the fascinating world of ally only people in the top one tenth much greater benefits to a Manhattan federal fiscal policy. of one percent of tax payers have banker writing off interest payments, one of the first things you notice is to worry about dividends. In 2005, on his $5 million townhouse than a that federal income tax rates are pro- Political Scientist LarryBartels noted Detroit family who just purchased a gressive - wealthy individuals pay a that taxpayers earning $1 million or $55,000 home. greater proportion of their income in more a year paid more than half of Worse still, most of these programs tax than poor people do. In 2008, the the tax on dividends. Yet Bush's cuts are only deductions or non-refund- first $8,950 a single adult taxpayer on dividend taxes and capital gains in able tax credits, which means that earns is non-taxable. Above that, you combination with previously existing only individuals who would other- pay taxes at steadily increasing rates deductions cost $48.6 billion a year. wise have scads of taxable income as your income increases. Currently, The result? can take advantage of them. If I only the lowest tax bracket is 10 percent In 2003, Investor Warren Buffett earn $20,000 a year, I can only take and the highest is 35 percent. noted that Bush's changes would have $20,000 in deductions, whileif I eari One major effect of President left him paying three percent of his $200,000, I can take $200,000 in George W. Bush's tax cuts was to cut income in taxes, in comparison to his deductions. One notably progressive rates. Until 2001, federal income tax secretary, who paid 30 percent of her exception to this rule is the Earned- brackets ranged from 15 percent to 39 income. Income Tax Credit, which allows percent. After that, all taxpayers saw That thump you just heard was the low-income taxpayers to get money declines in their tax rates. In 2002, I increasing tax burden and cuts in gov- back beyond their tax liability. saved $338. ernment services falling on the medi- So the next time you have the Thanks, George. I'll buy you an an-income household, which only opportunity to do your taxes, take O'Doul's the next time I'm in Dallas. makes about $46,000 a year. it. Wading through those deductions or maybe he should buy me dinner But it gets worse. lines and instructions might seemlike - because not only did the rate cuts The top three deductions, accord- a frustrating waste of time, but it's benefit the wealthy, but his other tax ing to the Tax Policy Center, are worth it to gain an understanding of policies also helped individuals who employer-provided health-insurance, who benefits from U.S. fiscal policy. needed it least. contributions to 401k and traditional Tax brackets are only the straight- Individual Retirement Account plans - Patrick O'Mahen can be forward half of the story. The other and deductions on home interest. reached at pomahen@umich.edu. An amateur at the Big Dance 40 0 EDITORIAL BOARD MEMBERS: Nina Amilineni, Emad Ansari, Emily Barton, Elise Baun, Harun Buljina, Ben Caleca, Satyajeet Deshmukh, Brian Flaherty, Emmarie Huetteman, Emma Jeszke, Sutha K Kanagasingam, Shannon Kellman, Jeremy!Levy, Erika Mayer, Edward McPhee, Matthew Shutler, Neil Tambe, Radhika Upadhyaya, Rachel Van Gilder NICOLE PREMO ,EWP01NT Preventing the hike I I Last Thursday, students supporting the "Stop the Hike" initiative met with the Regents to plead their case. Their proposal is simple - stop increasing tuition. While the idea sounds appeal- ing to undergraduate students, the proposal is as implausible as it is shortsighted. The University must adjust its tuition costs to grapple with the effects of inflation and decreasing state fund- ing. But the Center for Education Policy within the Roosevelt Institution - a student-run think tank and public policy group on campus - pro- poses a one-year moratorium on tuition hikes. This would allow students, faculty, regents and experts to collaborate on the best way to deal with tuition in the long run. There is no denying that a University of Michi- gan degree is becomingmore and moreexpensive. Just last year, both in-state and out-of-state stu- dents saw a 7.4 percent increase in tuition costs. The increase is representative of a larger trend - tuition has increased 47 percent since 2002. But the overarching hike does not come without rationale. As. state appropriations decline, the University has to use alternative methods of gen- erating immediate capital. Consequently, student tuition has become the source of an increasingly large proportion of the University's general fund, reaching a high of 62 percent in 2007. While a pragmatic approach is necessary, the University and its budget committees must rec- ognize that an indefinite tuition hike is absurd. By continuing to shift the burden onto students, the University will only delay actually dealing with the issues that make the hike necessary. Instead, the University can better serve its students and its own long-term, self-sustaining goals simultaneously by instating a moratorium on tuition hikes for the 2009-2010 academic year. The University could use this fiscal year to reas- sess its economic policies in light of forthcoming developments such as stimulus package money, possible economic upturn and market develop- ment. Kim Dancy, co-director of the Roosevelt Cen- ter for Education Policy, advocated for the mora- torium in a policy brief presented to the regents during their Thursday meeting. In addition to arguing that ever-increasing tuition is not a responsible budget strategy, the proposal out- lined the broader socioeconomic context of the issue and the burden it imposes on students and their families. In her brief, she argued, "With the highest unemployment rate in the nation for January (11.6 percent), it is clear that economic decline has hit hard, making the prospect of entering or continuing a degree program unat- tainable for many individuals." "Despite 'risks associated with such a poli- cy," she wrote, "it is in the best interests of the majority of University students to maintain a climate of academic distinction and diverse stu- dent population." The proposed one-year tuition increase mora- torium presents aunique opportunity for collabo- ration between the administration and students. The University should reassess tuition increase as the answer to fulfilling budget benchmarks. Rather than spendingthe year with other budget officers developing a new plan that yet again asks the students to make up for that which the state can no longer provide, the budget officers and regents should spend the year with students, pol- icy makers and state representatives to figure out long-term solutions to maintaining and improv- ing access to higher education in Michigan. It is the responsibility of the University as an institution to address this economic difficulty in new and innovative ways. And it is long past time to throw out the old, shortsighted tuition hike solution for the sake of long-term budget sustain- ability. Nicole Premo is co-director of the Roosevelt Center for Education Policy. used to appreciate sports more. I had a varsity jacket in high school, practically collected Under Armor workout gear and was able to name a handful of professional ath- letes. You'd hardly know it from the - confused look on my face as I some- how found myself MEG watching Thurs- YOUNG day's NCAA Tour- nament games. When I got to the University, one of the first things I did was buy season football tickets. I even managed to sit through the entire Appalachian State game last year. But that hardly lasted. By October, Michigan sports became eerie to me. On football Saturday mornings, with the entire town wearing matching T-shirts, "Hail to the Victors" sounded like a national anthem and the marching band seemed surreal and nationalis- tic, like a Soviet demonstration. Sur- rounded by my classmates singing the fight song, I didn't understand what we were fighting for. Why do people identify with their favorite team so strongly? They aren't the ones down there running on the field. Sports seemed so arbitrary and overblown. These feelings lasted my entire freshman year, as well as during last year's football season. Needless to say, I didn't waste money on any kind of tickets again. But around the time of this year's Super Bowl, my boss at Cafe Ambro- sia, Ed, decided to take me to task. "You lefties," he told me, "only feel this way because you're bad at sports yourselves'" He describes himself as the only liberal who sees value in them. He sees beauty and heart in athletics, and asked me to look at them as I would at art or music. My main problem with sports is how commercial they've become. Clearly, athletics carry a lot of power, and hundreds of millions of dollars at our University are spent on them. People have to pay through the nose for season tickets, signed merchan- dise and ESPN6. But Ed defended sports, saying commercialization happens to all forms entertainment. "Just look at the music industry," he said. He's slowly convincing me that, at the heart of the game, something more meaningful is going on. What that is, he didn't tell me what it is. But he challenged me for saying that sports don't mean anything. He told me about moments in sports history when athletes had everything to fight for. In the 1936 Olympics in Berlin, Jesse Owens won four gold medals in track and field events that were all but a' referendum on Third Reich eugenics. When Joe Louis knocked out German Max Schmel- ing in the same year, it sent the same message home. In 1947, Jackie Robin- son broke the color barrier in Major League Baseball. Ed asserted that Western Texas's victory against the University of Kansas catalyzed the desegregation of southern collegiate basketball teams. He told me about the history of the game. Once, sportsmen worked as grocers in the off-season, before the multi-million dollar contracts we have today. In some sports, players still do. Last Thursday, my friend and I went to our boss's house for the Clem- son vs. Michigan basketball game. Four kids hollered and jumped up and down in front of the television, cheering on the Wolverines. One of the boys had never seen a basketball game before, and yet he was point- ing and booing as loud as the rest of them. It wasn't until then I realized 'the power of competition. It was difficult.to see through the commercialization of something like March Madness, but the Wolver- ines' return to the playoffs felt like an appropriate time. Michigan was banned from the playoffs in 2002 and 2003 after it came to light that former basketball booster Ed Martin had paid off players in the '90s. Not since 1998 has our team made it as far as we did Thursday night. And we made it How 'M' basketball illustrated the meaning of sports. to the playoffs, fair and square. My boss likes collegiate sports because of the distance they keep from huge returns. He appreci- ates the guys who aren't playing for money but for love of the game. I real- ized that I may not love the game as the players or true sports fans do, but S can appreciate the way their passion' brings them together. I've decided to give sports another chance. Maybe it's the terrible econ- omy. Maybe it's the way I felt in the last 30 seconds of Thursday's game. Sports can bring people closer togeth- er and overcome boundaries that few other mainstream pasttimes can. I'm still dubious about franchised goods, multi-million dollar contracts and Madonna love triangles, but I think I can finally stop arguing with Ed. Sports have spirit, after all. - Meg Young can be reached at megyoung@umich.edu. LETTERS TO THE EDITOR: Readers are encouraged to submit letters to the editor. Letters should be less than 300 words and must include the writer's full name and University affiliation. Letters are edited for style, length, clarity and accuracy. All submissions become property of the Daily. We do not print anonymous letters. Send letters to tothedaily@umich.edu. A