Monday, April 30, 2012

The Buffett Rule Why the 1 Percent Should Pay

Yes, I support the Buffet Rule.  The 99% pay most of the taxes in the country.  Many low-to-middle income families pay too much in taxes.  The 99% pay taxes based on their earnings and assets therefore the 1% should be required to follow the same guidelines.

The Buffett Rule is named after investor Warren Buffett who stated in 2011 that he opposed rich people paying less in federal taxes, as a portion of income, than the middle class, and voiced his support for increasing income taxes on the wealthy. 

The Buffett Rule is a tax plan that was proposed in 2011 by President Obama. The tax plan would apply a minimum tax rate of 30% on individuals making more than a million dollars a year to ensure that they do not pay a smaller percentage of income in taxes than non-wealthy Americans.  If enacted, the rule change would result in approximately $36.7 billion per year in additional tax revenue and would help to slightly reduce the country’s deficit.

Some of the reasons for the disparity in taxing wealthy Americans are due to the fact that revenue from long-term capital gains is taxed at a maximum rate of 15%, tax breaks for corporations and the wealthy such as estate taxes, tax deferred investments and off-shore investments.

Senator Harry Reid stated “7,000 millionaires paid no federal income taxes in 2011” and approximately 250,000 taxpayers file income taxes with adjusted gross income of $1 million or more. According to the Tax Policy Center by 2015, approximately 2,000 – 3,000 taxpayers with an adjusted gross income of more than $1 million would pay a tax of 15% or less. Here are 6 ways to make the 1% pay.
  1. Call.  Call your local television and radio stations and newspapers and demand additional coverage on taxpayers who paid less in taxes than the 99%. 
  2. Write. Write and call your local congressman and other city and state politicians to request that the wealthy pay more in taxes.
  3. Pay.  Make sure you pay your taxes.  The lack of taxes paid also contributes to the country’s deficit.  Paying taxes owed helps to generate revenue and helps to slightly reduce the deficit.
  4. Plan for the future.  If the economy continues to improve at a slow pace, this will affect many government agencies who will continue to raise costs on city services.  Reduce your spending by 30-50% to save money and ensure you can for the increasing costs of city services and fees.
  5. Vote. Voice your concerns about issues that affect you or affect your community, family or friends.  Voice your concerns by voting at primary and general elections.  Your vote does count. Don’t complain if you don’t vote.
  6. Don’t forget. Many times taxpayers voice their concern about an issue for a week or two and then forget about it.  If this is an issue you feel strongly about voice your concern until you see a change or at least until the next presidential election.

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