Wealth Blog

Finance Blogs » Wealth » Higher taxes? Blame it on Buffett

Higher taxes? Blame it on Buffett

By Judy Martel · Bankrate.com
Sunday, September 18, 2011
Posted: 8 am ET

President Obama is calling his proposal for a new, higher minimum tax rate for those earning more than $1 million a year the "Buffett Rule," according to an article in the New York Times.

This, of course, is a reference to billionaire investor Warren Buffett's public plea to the government to force the rich to pay more taxes as part of a deficit-reduction plan.

Republicans are opposed to raising taxes on the wealthy because they say it will discourage investment, a line of reasoning that Buffett disputed in his op-ed piece in the New York Times last month. Instead, Republicans contend that deficit-reduction programs should come from eliminating some tax breaks and overhauling Medicare, Medicaid and Social Security.

Obama's proposal aims to ensure the rich pay at least the same percentage of their earnings as the middle class. He hasn't said what the new tax rate will be, so it's uncertain how much revenue will be raised. He has said that he wants to eliminate the alternative minimum tax, which was created to make sure that those who claimed many deductions did not avoid paying income tax. Obama's tax overhaul will lower the tax rate for many in the middle class, he claims, while making the rich pick up the slack. The Administration estimates that 0.3 percent of taxpayers will be affected by the "Buffett Rule."

The goal of higher taxes -- on wealthy individuals as well as corporations -- is really to fund the $447-billion job-creation plan Obama has been promoting. What do you think of Obama's tax proposal?

Keep up with your wealth and follow me on Twitter.

Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
5 Comments
EIEIO
September 19, 2011 at 4:00 pm

Go to the website AMERICAN THINKER. There is an article dated 9/19/11 titled "Obama's Recipe For Disaster" by Adam Yoshida.

Obama has to be defeated along with all his Marxists Democrats. America is doomed if he is re-elected.

MarGee Fasano
September 19, 2011 at 12:17 pm

We were happy to hear Warren Buffet comment on the unfairness of taxes for people to pay more than large Corporations and people making one million dollars plus. It is about time the rich pay at least the same percentage that the average citizen pays, instead of the Seniors on fixed incomes and middle class Americans having to be increased all the time.

Deadpool
September 19, 2011 at 11:38 am

I have to agree with Dave.

But I think higher taxes shouldn't have a bullseye solely on Buffett's back. He only said what made sense and what middle class Americans have been saying for years. But politicians begged to differ.

If you want to place blame, place it on those who seeked to make the rich become richer, not on the sole voice of reason within those ranks.

Dave
September 19, 2011 at 7:30 am

I'm not in favor of much of Obama's proposal with the exception of the top 1% paying more. They've had a 50% cut in taxes over the past 30 35 years while the middle class has picked up the slack. Most corporations pay nothing because of loop holes. Here in Wi 2/3 of corporations pay no state tax. Harley Davidson CEO whines because his company paid one tenth of one percent in state taxes. Wi has one of the lowest corporate tax rates while us WI citizens one of the highest Scott Walker just made it worse. Middle class paying more in taxes to relieve even more for corporations. In fact Walker goes around the state handing out 1 - 2 miilion dollar checks to corporations who already haven't paid any taxes. Some come out having $$$ given to them without paying anything. Corporation pays nothing in state tax plus gets a check from Walker. My state tax went up about 8% under Walker.