Democratic Senators to Push ‘Buffett Rule’

[alp227]

Democratic senators announced Monday that they would introduce legislation this week codifying President Obama’s principle that the superrich should pay at least the tax rate of middle-class workers.

But the effort to press the populist tax agenda Mr. Obama outlined in his State of the Union address could divide Democrats since many of them are more anxious to talk about “tax fairness” and Medicare in an election year than to try to raise taxes.

Senator Sheldon Whitehouse, Democrat of Rhode Island and the author of the so-called Buffett Rule bill, told reporters Monday he was serious about a legislative push this year. He said he might press his legislation as a stand-alone bill or seek to attach it to other legislation.

“In theory, we have a progressive tax code in which the more successful you are, the more money you make, the greater rate you pay in taxation,” Mr. Whitehouse said. “Unfortunately what turns out to be the fact in practice is that you have these huge exceptions.”

full: http://www.nytimes.com/2012/01/31/us/politics/democratic-senators-to-push-buffett-rule.html

[liberalmike27]

1. This is a Start

Like so many seem to point out, it isn't nearly enough to help with the debt.

Why 30 percent? Why not at least 35 or the top tax rate? And why not add payroll taxes, like everyone else pays.

These suggestions seem pretty anemic to me, and I hope that when it comes down to it, if the republicans don't want to agree to Obama's tax bills, he'll just let the cuts expire that Bush shoved down the throats of Congressional Democrats last time.

Personally I think the time is nigh for reenactment of tax rates of the depression era, as the crisis is that severe to warrant it, both in debt, and with the need of job creation.

[karynnj]

5. You are missing that 30% is on total income, the rates are marginal rates

It is true that as income goes to infinity, the rate would approach the top marginal rate.

The fact is, if they get this passed, it will be a massive change from the current rates. Returning to the pre-Bush tax cut rates takes the top level to something like 39.5%.

[zipplewrath]

2. Payroll taxes

We "fixed" social security and medicare back in the '80s, except that no one estimated that the distance between the haves and have nots would bet so big. People who are subjected to the minimum tax for bajillionaires, should also have to pay a "payroll tax" equal to the maximum paid by the employer per employee.

[DocMac]

4. Yeah, I had a problem the other day

on another thread about this subject. Where as, my problem was getting taxed on my payroll tax and then again on the capital gains. For many of these very wealthy, investments are their only income. That should be seen as earned income if that was their only income. But someone making earned income of 100k has no real incentive to to risk investment and be taxed again at 15%.

The cap on SS tax should be eliminated and a Bill introduced that SS and Medicare deposits can NOT be touched. Never touched. Also, 401k's should be protected....some automatic trigger that stops trading if a loss occurs at 2% in a day. I don't have an answer...just an issue.

[Kellerfeller]

6. I don't understand

How does the distance between haves and have-nots play into this?

Pretend everything was the same in America except no one had over $5 million (or over $500k in income in a year). How would that change the SS/medicare situation?

[zipplewrath]

7. There's no payroll on capital gains

And for many, that's all the "income" they have.

[Kellerfeller]

8. But realistically

There aren't that many who live just off capital gains, and those would only pay up to the cap.

Not only that, I know I could live off the capital gains from $5M (as opposed to the tens and hundreds of millions the most people have a problem with). Heck, even the Obama's are worth around $10M

[Bill USA]

3. recommended! Push this and don't stop pushing it (in one form or another) till November!

[FredStembottom]

9. Finally, a start.

Now, actual effort must be shown.

I am encouraged.