A New York Times article from March stated that the highest tax rate can go as high as 80% without affecting economic growth. The NY Times seems to speak for the president so one needs to pay attention to their insane war on the rich pronouncements.
Whenever President Obama wants to reignite his war against the rich, he brings out Warren Buffet. Warren Buffet then complains that he pays too little and wants rich people like himself to pay more. So why doesn’t he pay more?
Mitt Romney actually does pay more in taxes than he is required to pay. In addition to donating roughly $4 million a year to charity, Mitt Romney paid between 14% and 22% in federal taxes over the last seven years. He did NOT declare all his deductions because he did NOT want to pay less in taxes.
Mitt Romney does what Warren Buffet claims he wants to do.
The wealthy often live off investment income. Investment income, capital gains, has a lower tax rate in order to encourage people with money to invest, spurring economic growth.
The top 1% of wage earners in the United States pay 40% of the taxes even with these tax breaks. That is not enough according to President Obama. If the rich paid their fair share, they’d be paying a whole lot less but this is not really about being fair.
The president wants to apply a 30% minimum tax rate on those who make more than million dollars a year (Buffet Rule).
President Obama’s logic is faulty because there aren’t enough rich people to begin to pay the debt. The Republicans could agree to taxing the rich more if the president would agree to cut the ever-expanding budget
President Obama will not pay down the debt as evidenced by the fact that in four years he has made NO effort to cut the deficit and does not appear to be concerned about the astronomical debt. So what will he do after he raises taxes on the rich? He can let the Bush tax cuts expire, hurting everyone.
If the rich pay the Clinton rates, they will pay out another $89 billion. Our deficits are running over $1.2 trillion each year. The rich cant pay off the deficit alone
The democratic plan at the moment is to allow the tax cuts of 20011 (Bush tax cuts aka Clinton tax hikes) unless the Republicans agree to tax the rich without tackling the unsustainable entitlement programs.
We already have a tax the rich plan; it’s called the alternative minimum tax (AMT).
The alternative minimum tax rate was originally put in place to tax the wealthiest, 155 of them. It evolved from being an add-on tax in 1969 to a parallel tax system today. It is not automatically adjusted to inflation so congress has had to patch it over the forty plus years it has existed.
The tax cuts of 2001 did not cut the salary taxed by the AMT. As an unintended consequence, the salary that gets targeted by the tax has not been increased. This year 4 million people had to pay the AMT. Next year, 30 million will pay by some estimates.
For tax year 2012, the alternative minimum tax exemption amounts are scheduled to revert to $45,000 for married couples filing jointly, $33,750 for single and head of household filers and $22,500 for married couples filing separately.
So much for targeting the rich.
Taxing the rich and canceling out the tax cuts of 2001 will not be enough to pay off the exorbitant debt. Where will President Obama go next to get the revenue he needs if he is not going to cut anything or tackle entitlements?
The most likely way is to level a VAT tax. The VAT (value added tax) will tax everything on everyone every step of the way. It is a socialist model, far more progressive than what we are used to, and it will forever change the way the United States does business. It will kill the middle class.
The VAT will be implemented if Obama is re-elected and has “more flexibility.” He sees the VAT tax as “novel.”
Then there is the Obamacare tax which will soon be unsustainable. Medicare has been robbed of future increases to help pay off Obamacare. Medicaid and Social Security have not been dealt with and they are unsustainable. Obama has been quick to criticize Ryan’s plan but where is his?
The only ones who escape under Obama’s tax plan are people who are on government welfare or who work off the books.
Can’t wait until he has “more flexibility.”