The Obama-Buffet Tax is really nothing more than a political ploy (note, I did not say stunt, as ploys are allowed in politics) that is designed to breathe life back into the liberal base of the Democratic Party. It really would be funny if the republicans were to say, go ahead Mr. President, we will vote for Obama-Buffet. Then just watch the president back track, jump through hoops and take a long vacation.
This Wall Street Journal analysis (Wall Street Journal Story) of the proposed bill is the best I have read yet. Here is a piece of the story:
There's one small problem: The entire Buffett Rule premise is false, as the nearby table shows. In 2008, the last year for which such data are available, the IRS reports that those who made more than $1 million in adjusted gross income paid an average income tax rate of 23.3%.
That's slightly lower than the 24.1% rate paid by those making between $500,000 and $1 million, probably because the richest are like Mr. Buffett and earn more from capital gains and dividends. The rate for a relative handful of the rich—400 people—fell to 18%, the modern equivalent of Barr's Gang of 21. But nearly all millionaires still paid a rate that is more than twice the 8.9% average rate paid by those earning between $50,000 and $100,000, and more than three times the 7.2% average rate paid by those earning less than $50,000. The larger point is that the claim that CEOs are routinely paying lower tax rates than their secretaries is Omaha hokum.
So, the real deal with this proposed tax increase on the supposed rich is nothing but a liberal tax rate increase. Just what the president spoke against in 2009. Again, the speaker should tell the president, yep, we will pass your bill. Then we will see whose taxes really will go up under this political ploy and which democrats would be first to vote against the bill.
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