President Barack Obama will propose a new higher tax rate for millionaires, the White House confirmed Saturday, giving his deficit-cutting proposal a populist sheen that will invigorate the Democratic base but draw swift opposition from Republicans.
He will call it the “Buffett Rule,” a nod to billionaire investor Warren Buffett, who has criticized a system that allows the rich to pay a smaller portion of their income in taxes than middle- and working-class Americans because wages are taxed at a higher rate than investment income.
Obama will include the tax in a new proposal that he’s set to release Monday at the White House, his latest effort to guide Congress toward a plan that lowers the debt by $1.9 trillion through both spending cuts and new tax revenue.
The proposal is expected to include hundreds of billions of dollars in cuts to Medicare, Medicaid and defense programs, as well as a call on Congress to overhaul the Tax Code.
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8 Responses
Not a horrible idea, but it won’t raise much money since the group they are proposing this alternative tax already provides most of the revenue. At least it is better than his idea that earning $125,000 makes you “super-rich”.
The major ways the “rich” avoid taxes is by being able to deduct losses when they lose money on investments, and since much of their income comes from sources that are basically recycled corporate profits that have already been taxes (before being distributed to shareholders) those sorts of income have lower tax rates when individuals pay tax on the proceeds.
If they forget to index it, it will eventually affect the middle class when inflation kicks in (which is inevitable
given the massive deficits, funded by “printing” money).
He should concentrate on the really rich and not increase taxes on those small businesses and entreprenurs who make a million dollars a year which is not that much money in New York or LA. The costs of living have gone up and those families who work really hard and earn two incomes should not be penalized.
It will absolutely kill all non-profit charities. Which is exactly what Obama wants. He wants the government to be the only charity.
I have not seen yet what the tax will be, but, I doubt it is a good idea.
Warren Buffet pays most of his taxes at capital gains rates, which are lower. If Obama wants to bring capital gains rates up to regular rates, that would basically raise the risk of investing, which would make people invest less, and save more, and kill the economy.
I don’t think we should raise taxes on the rich. They already pay way more than their share.
I don’t feel any animosity towards rich people.
So he’s proposing to include hundreds of billions of dollars in cuts to medicaid and medicare, and then they turn around and say the Republicans are gonna make these cuts? These dems are unbelievable!
Its not good enough that the bottom 50 percent of earners pay ZERO in Federal Tax, he wants the people who pay it already to pay more!?!?!?!?
Increase the tax payers by LOWERING taxes LONG TERM on those who actually hire (those disgusting ‘rich’ people who for the most part earned their money!) so they could hire more people with their money. It works all the time.
#3- any sort of alternative minimum tax could include a deduction for charitable contributions (most conservatives would insist on it), as well as for state taxes (most liberal will insist on it). At least in 2011-2012, it has to pass both houses of Congress.
Its very simple just stop all the waste and all the thieves who are stealing govt money. We waste Hundreds of billions a year. There’s obviously a reason that the Post office keeps losing money, ghetto Port Authority keeps losing…