In the article Obama Tax Plan Would Ask More of Millionaires written by Jackie Calms was published in the New York Times back in September 2011 we learned that President Obama plans on taxing those who make more than one million a year pay a tax rate that will be close enough if not equal to the rate of taxes people who belong to the middle class. The idea of this proposal came from a billionaire known as Warren E. Buffett. The New York times article wrote that “the billionaire investor who has complained repeatedly that the richest Americans generally pay a smaller share of their income in federal taxes than do middle-income workers, because investment gains are taxed at a lower rate than wages.” This also leans towards the idea that the rich get richer while the poor stay poor. One of the reasons for Obama wanting to get “Buffett Rule” is because he believes it is fair for those making more money pay more taxes. Obama also believes that it’ll help our economy’s deficit begin to disappear.
A counter argument for this idea however is that there may be discouragement for people to invest. Or at least that’s what the Republican Party claims. In another article “Rebuffing Obama’s gimmicky ‘Buffett Rule’” written by Dana Milbank from the Washington Post from this year back in April also discusses some of the reasons as to how and why this plan may not work out well. In the article by Milbank wrote that “A search of the White House Web site yields 17,400 mentions of the Buffett Rule a proposal that would bring in $47 billion over 10 years, much of that from 22,000 wealthy households. By contrast, the alternative minimum tax gets fewer than 600 mentions on the site. The AMT, if not changed, will take about $1 trillion over a decade from millions of taxpayers, many of whom earn less than $200,000 a year.” He doesn’t believe the “Buffett Rule” makes much of a difference nor will it be good. Find out what the Obama’s “Buffett Rule” would do for you in the tax calculator link below.
Tax Calculator
The picture above is of Warren E. Buffett
