When the most notable billionaire, Warren Buffett, admits to unfair advantage with the federal tax code then perhaps it time to take a new approach.
The federal deficit is quite the tender issue in this nascent election season. With the hostile economy and the charades of the GOP candidates, it’s difficult to entertain the “Buffett Rule” — it doesn’t seem ridiculous to expect Americans who garner an annual $1 million to pay taxes comparable to middle-class earners.
On Monday, Obama proposed a new tax code that would cut the deficit by $3.6 trillion, a majority of which would come from tax increases and the tax on millionaires.
The Wall Street Journal quoted the President as saying, “Either we ask the wealthiest Americans to pay their fair share in taxes, or we’re going to have to ask seniors to pay more for Medicare. We can’t afford to do both.” He later emphasized, “This is not class warfare. It’s math. The money is going to have to come from someplace.”
Apparently big spenders are exempt from tax increases. As House Speaker John Boehner said, tax increases destroy jobs, since the wealthy are Washington’s “job creators.”
With 10 percent of Americans possessing two-thirds of the wealth, we need more of the mega rich, like Warren Buffett, to take the higher road — one that might not be paved with as much gold — to see the inequality in the economic system.
It is important to remember that about every forty cents of the government dollar is borrowed money from foreign countries.
Congress’s deficit-reduction committee could really take the “Buffett Rule” as advice, since I would presume he’s one of America’s savviest financiers.
The lower rate on capital gain is where the main inequality arises. But Congress is billionaire biased, which makes complete sense since the 10 richest members of congress all voted to extend the Bush tax cuts.
In August New York Times op-ed, Buffett wrote, “My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice.”
I could see how the mega rich would want to bop Buffett on the head for putting billionaires’ bank accounts on the chopping block, but Buffet attested that his 2010 tax rate was 17.4 percent.
One of the richest men in the world gets taxed less than many of his employees, whose average tax rates average 36 percent
But Republicans and “job creators” alike shouldn’t be too concerned. After his statements on increasing taxes for his Robin Hood tax philosophy, Buffett said, “I’ve employed a food taster” perhaps as a precautionary measure.
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