As part of his deficit reduction plan, President Obama has proposed some tax increases on the wealthiest Americans, which would come via allowing the Bush tax cuts for the two highest tax brackets to expire and implementing the “Buffett rule,” which stipulates that millionaires and billionaires shouldn’t pay a lower tax rate than middle-class Americans.
Republicans have predictably, blown their collective top over the Buffett rule. And today, they were aided by a bizarre Associated Press “fact-check,” which purported to reveal something disingenuous about Obama’s plan. “President Barack Obama says he wants to make sure millionaires are taxed at higher rates than their secretaries. The data say they already are,” the AP wrote, noting that the average tax rate for those in the highest tax brackets is, of course, higher than the average rate for middle-class or low-income Americans.
This is not surprising, and it certainly doesn’t make the Buffett rule any less relevant. After all, as Center for American Progress Action Fund Director of Fiscal Reform Seth Hanlon wrote, “tons of data — including data cited in the AP article itself — confirm the compelling need for a Buffett rule because large numbers of super-rich individuals are indeed paying lower taxes than middle-class families“:
More– 1,470 households reported income of more than $1 million in 2009 but paid zero federal income tax on it.– The average federal income tax rate of the richest 400 people in the country in 2008 was 18.11 percent. In 2007 it was 16.62 percent. [...] The tax rates paid by the “Fortunate 400” have plummeted since the mid-1990s, when their average effective rates were about 30 percent. [...]– Due to the so-called carried interest loophole, managers of hedge funds and private equity funds pay 15 percent capital gains rates, and no payroll taxes, on their profits from managing other people’s money. That’s less than what middle-class families pay just in payroll taxes on their wages — let alone what they pay in income taxes.
Look folks, cut the hyperpartisan bs and do the math. To close the budget gap, we will have to raise taxes. An objective look at the historical data shows that a modest rise in "rich peoples'" income taxes to 1990's levels shouldn't impact job growth. We will also have to make drastic cuts in the way entitlements are structured and make changes to the lower tier tax code (no more net positive returns for those who don't pay income tax).
ReplyDeleteYou think any politician has the nuts to do this? NO! Because so many of you fall for the bs coming out of their mouths!
Democrats will continue to demagogue conservatives for going after entitlements, and Republicans will continue to blast liberals for calling for common sense changes in tax rates on the rich while spreading the same BS stories of welfare queens eating up the budget, when they know it's elder americans who are chewing into our finances.
Whats needed is for common sense americans to stand up and stop allowing the idiots on the extremes of both parties to guide the debate. We as Americans have lived high on the hog for years as our lifestyles have been financed by debt (both domestic and foreign). Unfortunately my generation will have to pay the piper (I'm 30) while also setting the stage for the next generation to step up and reclaim the american dream.
God Bless America!
You are wrong 9:07. To close the budget gap, we must eliminate Hussien Obama and all of the other tax and spend politicians-democrat and republican. People have done the math. If you took everything from the millionares and billionaires, it would still be just a drop in the bucket towards closing the defecit gap. The only way out is to stop the insane spending right now-not over the next ten years, but immediately. Unfortunately, this is not going to happen and America is going to collapse, and it won't be because rich people didn't pay "their fair share". It will be because of the same entity that causes about 95% of all this county's problems-the government.
ReplyDelete9:07. Raising taxes will only make those who create jobs, hold off on doing that. Less workers, less tax revenue. Lower taxes and you will actually increase tax revenues due to the employers hiring. Raise taxes and the trickle down effect will raise prices on consumer goods. In effect, people will adjust their shopping to eliminate things they were buying before so they don't go over their budgets. Thus, once again, less tax revenue. Lower taxes and people will spend more......more tax revenues. And so on and so forth. See how this works? this is math.
ReplyDelete10:47 I think you've watched so much Fox news, they've brainwashed you. You've pretty much quoted them word for word in their talking points.
ReplyDeleteLook, the rich and corporations said "if we don't get the Bush tax cuts extended, we won't hire. Extend the Bush tax cuts so we can start hiring people".
Show me the jobs! You can't! They didn't hire! It was pure scare tactic to keep their taxes lowered.
We MUST raise taxes on the rich. There's no way around it.
Everyone else's taxes have gone up over the last 20 years, but the rich have seen their taxes go down.
What's wrong with that picture?
Take a look around. We're broke.