Thursday, September 10, 2009

Debt and Taxes

So there was a news story on the way to school this morning about President Obama's speech last night regarding his proposed health care plan and how much it would cost over 10 years. Of course, it was a grotesquely large number, but as adults we have unfortunately become so immune to such large numbers with regards to our government's spending habits that I didn't really think much about it. Then, from the back seat, the following conversation begins (summary)...


Alli: Mom, does Barack Obama make a lot of money?
Sharla: Well, he makes more money than most people, but not a whole lot for the responsibilities he has. Why?
Alli: Well, how does he have enough money to pay for what they were talking about?
Sharla: Well, he doesn't, and that's the problem. He will either have to borrow it or charge more for taxes.
Alli: What's taxes?
Sharla: Well, when Mommy and Daddy go to work, we don't actually get to keep all of the money we earn. The government keeps part of it to use to pay for things like this.
Alli: Well, what about people that don't work or make money?
Sharla: Basically, they don't pay taxes.
Alli: WHAT? That's not fair!

She was pretty perterbed and rambling about the whole taxes thing at this point, and I was trying to explain that it's necessary for people to contribute in order for things like roads and schools that we use everyday, but some people have to contribute a larger percentage than others and some don't contribute at all. Unfortunately, the conversation had to be cut short because we had arrived at school so we will have to finish later this evening. It could be interesting to see what she has to say after she has had time to simmer on the issue all day. I sent her teacher an email warning her that Alli may want to discuss the topic but didn't have all the information as of yet. Anyway, I just found it very interesting that she was 1) actually paying attention to what was being said 2) insightful enough to realize that they were talking about A LOT of money and wondering who was going to pay for it 3) got to see a real life application of the fact that life isn't always fair. Too bad not all adults can think on the level of a 1st grader I suppose.