Washington, D.C. – President Obama is in the heat of election season right now. He is calling on Congress to pass the “Buffett Rule” a millionaires tax named after billionaire investor Warren Buffet,
The Buffett Rule is scheduled for a vote in the Senate on April 16th, but in reality there is zero chance the tax will pass the House. The vote is more symbolic and a political stunt to portray the Democrats as the champions of economic fairness.
Obama said in his radio address,
“We don’t envy success in this country. We aspire to it. But we also believe that anyone who does well for themselves should do their fair share in return, so that more people have the opportunity to get ahead – not just a few.”
Obama calls the plan the “Buffett Rule” for Warren Buffett, the billionaire investor who has complained that rich people like him pay a smaller share of their income in federal taxes than middle-class taxpayers. Many wealthy taxpayers earn investment income, which is taxed at 15 percent. Obama has proposed that people earning at least $1 million annually – whether in salary or investments – should pay at least 30 percent of their income in taxes.
The vote also comes at a time where it is looking more and more that Mitt Romney will be the Republican Candidate for President. Romney’s personal wealth is estimated to be around $200 million dollars but he only pays about 15% of his earnings in taxes because it is all from investment income.
By contrast, the top nominal rate for taxpayers with high incomes derived from wages, not investments, is 35 percent.
While it may sound good to make the super rich pay more. The Joint Center for Taxation, a bipartisan analyst group, says the tax hike will produce $47 billion dollars by 2022 which is nothing compared to the $7 trillion dollars in debt that is projected to be amassed by then.
Obama also wants to raise taxes on those making more than $250,00 per year. Obama said,
“Today, the wealthiest Americans are paying taxes at one of the lowest rates in 50 years. Warren Buffett is paying a lower rate than his secretary. Meanwhile, over the last 30 years, the tax rates for middle-class families have barely budged.”
Do you agree or disagree with the “Buffett Rule“?