Obama Calls On Congress to Pass "Buffett Rule Tax"

[Dogmatic1]

Obama Calls On Congress To Pass 'Buffett Rule' Tax

By JIM KUHNHENN 03/31/12 05:19 PM ET

WASHINGTON — President Barack Obama is calling on Congress to increase taxes on millionaires, reviving a proposal he first pitched last September that aims to draw sharp election-year lines between the president and the Republican opposition.

The plan, scheduled for a vote in the Democratic-controlled Senate on April 16, stands little chance of passing in Congress. But it is a prominent symbol of the efforts the president and congressional Democrats are making to portray themselves as champions of economic fairness. Republicans dismiss the idea as a political stunt with little real effect on the budget.

"We don't envy success in this country. We aspire to it," Obama said in his Saturday radio and Internet address. "But we also believe that anyone who does well for themselves should do their fair share in return, so that more people have the opportunity to get ahead – not just a few."

Obama calls the plan the "Buffett Rule" for Warren Buffett, the billionaire investor who has complained that rich people like him pay a smaller share of their income in federal taxes than middle-class taxpayers. Many wealthy taxpayers earn investment income, which is taxed at 15 percent. Obama has proposed that people earning at least $1 million annually – whether in salary or investments – should pay at least 30 percent of their income in taxes.

The push for the Buffett Rule comes as millions of Americans focus on their taxes with the approach of this year's April filing deadline.

It also draws renewed attention to the effective tax rate of Republican presidential front-runner Mitt Romney, a millionaire who is paying 15.4 percent in federal taxes for 2011 on income mostly derived from investments.

By contrast, the top nominal rate for taxpayers with high incomes derived from wages, not investments, is 35 percent.

In his remarks Saturday, the president encouraged listeners to pressure their members of Congress "to stop giving tax breaks to people who don't need them."

While the plan would force millionaires and billionaires to part with more of their money, Congress' Joint Committee on Taxation estimated that if enacted, legislation reflecting Obama's proposal would collect $47 billion through 2022 – a trickle compared with the $7 trillion in federal budget deficits projected during that period.

Obama also renewed his call for ending tax cuts for taxpayers earning more than $250,000. Those breaks, enacted during President George W. Bush's first term, expire at the end of this year.

"Today, the wealthiest Americans are paying taxes at one of the lowest rates in 50 years," Obama said. "Warren Buffett is paying a lower rate than his secretary. Meanwhile, over the last 30 years, the tax rates for middle-class families have barely budged."

The new effort comes just days after the Senate fell short of the 60 votes needed to advance Obama-initiated legislation that would have ended $4 billion in annual subsidies to oil and gas companies. Two Republicans voted with Obama and four Democrats voted against him.

In the Republican address, House Speaker John Boehner challenged Obama to get behind energy proposals backed by House Republicans, sustaining a GOP drive to blame the administration for high gas prices in an election year. Boehner called for more oil and gas production in federal lands and for a freeze in new regulations over refineries.

He criticized Obama for pushing the anti-oil subsidy bill and for pressing Senate Democrats to vote down an effort to jump-start an oil pipeline project from Canada to refineries on the Texas Gulf Coast. He said Obama, in a meeting with congressional leaders a month ago, had shown a willingness to embrace some House Republican energy ideas.

"It was a new sign of hope, but unfortunately, only a brief one," Boehner said.

"The pain at the pump is an urgent issue for hardworking taxpayers and it deserves the same urgency from leaders here in Washington," he added.

http://www.huffingto...26pLid%3D148255

[usndiver]

We are going to a lot of class warfare rhetoric during the course of this campaign.

[Luigi1]

Class warfare will be the excuse to take from the earners & give more to the takers. We now have 3 generations that know of nothing but welfare. They in turn will teach their kids of welfare as a career choice. We aren't doing them or their kids any favors by crippling them for life through givaway programs.

How about teaching them real survival skills like how to ballance a checkbook, how to apply for a loan, how to invest in Wall Street on line, how to save or write a resume. This makes more sense rather that free cell phones & high speed internet.

Free WiFi high speed internet is almost everywhere in almost all public places.

[no left angles]

i know this is kinda off topic....but kinda on topic....

we are agreed we do not like the way the governments goin. my question would be....what would happen if a good chunk of the US population would i dunno pull a Pedro and jump the boarder, and denounce citizenship....what then?

Edited April 1, 2012 by no left angles

[captjohnk]

I wonder if that dope in the white house wants everyone to be like Buffet and not pay their taxes since 2001?

[Biker]

I just cant figure this Dummy out, If you raise Tax on big company's, alls they do is raise there prices more to cover there loss, Like gas, it is not going to do **** for the gas price but drive it higher.This Guys a wacko job.

[hpygrl]

i know this is kinda off topic....but kinda on topic....

we are agreed we do not like the way the governments goin. my question would be....what would happen if a good chunk of the US population would i dunno pull a Pedro and jump the boarder, and denounce citizenship....what then?

Been thinking of doing EXACTLY this - Panama, Ecuador or Belize.

[thegente]

This will NEVER pass...too many in the House of Reps who make a killing off having capital gains....I think it's really idiotic, all it will do is force more money offshore, and less investment here in the US. But then again, look at the source.

[Dogmatic1]

This will NEVER pass...too many in the House of Reps who make a killing off having capital gains....I think it's really idiotic, all it will do is force more money offshore, and less investment here in the US. But then again, look at the source.

I don't know, I think it will. Obama is desperate. The middle-class family is tired of paying the lion's share of our country's taxes. And, guess what? This country is beginning to see a divide between the wealthy and the poor. The middle class is disappearing. Who do you think Obama's campaign is listening to , right now? That's right...the same people who voted him in...the middle class. Obama only listens to the middle class while campaigning, however he only listens to the wealthy while sitting in office. I don't agree with taxing anyone who makes a million dollars annually a straight 30%, but if they are buying, expensive cars, yachts, lear jets, huge mansions, expensive trinkets and bobbles, while running a fortune 500 company, they should have to pay a luxury tax AND not be able to write the expenses off as business expenses. We all know what they are doing and so does our government! This is where my republican roots waver a bit. The wealthy should pay their fair share, however the truly wealthy should have to pay their fair share, not those who come in to money once in a blue moon. Lottery winners pay a HUGE chunk of taxes, right off the top! Not fair, why doesn't the Warren Buffets, Bill Gates, etc., pay their fair share?

I know, I'll be in the red...soon after I post this!

[thegente]

I definitely agree there are far too many loopholes for the ultra rich..my concern is having to pay another 15% on any of my investments...I am by no means wealthy, but I work hard for what I have, and don't feel like giving another 15% to support those who contribute nothing to society. I know many of the folks have been hit hard by the economic downturn, and I am all for helping my fellow American, but there are folks that are 3rd generation welfare recipients that I feel are entitled to nothing. Also, what makes you think that another 15% will make a difference when the government can't even balance our budget responsibly in the first place? Changing the tax code to make it an even playing field, HECK YES...increasing taxes and giving the idiots in DC more $$$, HECK NO.

[Dogmatic1]

I definitely agree there are far too many loopholes for the ultra rich..my concern is having to pay another 15% on any of my investments...I am by no means wealthy, but I work hard for what I have, and don't feel like giving another 15% to support those who contribute nothing to society. I know many of the folks have been hit hard by the economic downturn, and I am all for helping my fellow American, but there are folks that are 3rd generation welfare recipients that I feel are entitled to nothing. Also, what makes you think that another 15% will make a difference when the government can't even balance our budget responsibly in the first place? Changing the tax code to make it an even playing field, HECK YES...increasing taxes and giving the idiots in DC more $, HECK NO.

I absolutely agree with you! I have worked hard all of my life as well. We are the elite group of taxpayers, that have paid too much for too long. What Obama is trying to do is play on the heartstrings of the American middle-class voter. "See, I'm on your side...We are gonna tax the rich". However, how this will play out...the rich will continue to keep their money...hardly paying taxes, if any, at all and those who come into money via investments or start small businesses will get reamed!

The other thing, I think is funny, "the Buffett rule tax". Like Warren Buffett will be affected by this new tax law

Edited April 6, 2012 by Dogmatic1

[thegente]

I absolutely agree with you! I have worked hard all of my life as well. We are the elite group of taxpayers, that have paid too much for too long. What Obama is trying to do is play on the heartstrings of the American middle-class voter. "See, I'm on your side...We are gonna tax the rich". However, how this will play out...the rich will continue to keep their money...hardly paying taxes, if any, at all and those who come into money via investments or start small businesses will get reamed!

The other thing, I think is funny, "the Buffett rule tax". Like Warren Buffett will be affected by this new tax law

[TheToadvc]

I have been reading this forum for over a year now and never commented. I am a retired Treasury Officer and now, I too am suddenly hopeful for an RV before September. This is the argument which I posted in the Denver Dinar Group forum:

OBAMA DROPPED A HINT THAT HE IS PLANNING THE DINAR RV SOON, WHEN HE PROPOSED THE "BUFFETT RULE".

Those of you who are following Obama's election year schemes, know that he is calling on Congress to increase taxes on millionaires. Reviving a proposal he first pitched last September, he wants Congress to pass a 30% tax on American citizens who earn over one million dollars in a year. This is referred to as the "Buffett Rule".

Everyone is arguing that this could never pass. But I'm not so sure. It would probably be in the form of an Alternative Minimum Tax (AMT) on income that is currently being taxed at 15% capital gain rates. Nobody likes it when millionaires only pay a 15% tax on their income; even Republicans feel it should be higher. Obama has the GOP by their necks here because if they oppose this AMT, then they can be accused of causing a class war. During his election campaign Obama can claim that he tried to eliminate the debt but the GOP continually refused to tax the millionaires for their fair share.

SO, WHAT DOES THIS HAVE TO DO WITH THE DINAR RV? Well, this is completely my opinion, but if Obama can get this passed, I believe Timmy Geithner, will immediately push the button on the RV. There will be no debates as to the tax rate.......... all of us millionaires will be forced to pay at least 30% of the RV gain, based upon the Buffett Rule. The IRS will not even need a Tax Advisory determining the tax treatment of foreign currency exchanges. A congressional ruling will already have determined the tax rate.

Sounds unbelievable, but think about it........... the Buffett Rule may be the answer to solving the National Debt and ultimately extending Obama's presidency for another four years. He will be very popular. We know that thousands of US citizens have dinars and most are not being held in corporations or have been sent out of the country. Some of us also believe that for years, The US Treasury and not Shabibi controls the decision on when Iraq needs to RV. So, it makes sense; pass the Buffett Rule and the Government gets 30% of the RV. We still get rich and the Government does not have to litigate the tax rate issue. PROBLEM SOLVED.

That's why I think this RV will happen before November, 2012. JMO

[Dinar_o'saurs]

Seems like Buffetts original plan has been 'tweaked '.

I revisited his plan which was posted in the NY Times. It was not on how much, but at what percentage as well as the many exemptions for higher wealth people.

If you make money with money, as some of my super-rich friends do, your percentage may be a bit lower than mine. But if you earn money from a job, your percentage will surely exceed mine — most likely by a lot.

Now, this article is stating....

Obama has proposed that people earning at least $1 million annually – whether in salary or investments – should pay at least 30 percent of their income in taxes.

Let's hope it goes down in flames again!

[Usaok]

If he makes the rich poorer and wanting not to aspire to b uild bridges to businesses in this country then all will be submissive to government controll . Think about obamas objective , to controll all masses by big mean controlling government . If he does not go , we will be very very sorry . This menace must be voted out . No socialism and ultimately communism for my country . ,! How about yours ? Vote this **** out . He is a phoney and we the public are Finally seeing the truth . Vote not for party but just for a lesser evil . He is way toooooo evil .

Edited April 8, 2012 by TexasGranny
removed cussing - please do not use foul language in your forum posts

[dddvip]

Warren Buffet stands to gain via the fed reserve along w all his buddies off shore that have interest in the fed. What we need to do is end the fed!! Follow where the money trail and audit the system. Find out who is holding the puppets up in washington, it's a shadow government. I'm tired of the lies. Who owns the fed?? Why the secrecy? Cuz, then they would have to show you the books. Warren Buffet, has his money off shore I'm sure making money that isn't taxed here. I bet he made billions if not trillions, with the movement of our jobs that Obama, allowed to be sent to China, thanks, Bill Gates, he is probably in with the Fed too! Down with the Fed, really should be what a revolution should be about! That would send the roaches running for cover!! Audit the fed!!!!!

[WallyWeaver]

My belief is the argument on this thread is all wrong. The whole idea of the Buffett Tax is a complete misdirection.

The idea of paying more taxes.... for anyone, whether rich, poor, or middle class, is wrong.

More revenue to the government is wrong.

The Federal government does not have a revenue problem, it has a spending problem. Period.

We are currently running a $200 bil./ month deficit. Does the government really think raising taxes is going to fix that?

The whole argument is a sham anyway. All revenue collected from personal income taxes only pays the INTEREST on our national debt. That's it.

So the bottom line is this is really nothing more than class warfare that will fix NOTHING.

Watch this video of Rick Santelli going off on the Buffett Tax.... it's great.

[daniel c]

Pre election stunts ??

[Dogmatic1]

My belief is the argument on this thread is all wrong. The whole idea of the Buffett Tax is a complete misdirection.

The idea of paying more taxes.... for anyone, whether rich, poor, or middle class, is wrong.

More revenue to the government is wrong.

The Federal government does not have a revenue problem, it has a spending problem. Period.

We are currently running a $200 bil./ month deficit. Does the government really think raising taxes is going to fix that?

The whole argument is a sham anyway. All revenue collected from personal income taxes only pays the INTEREST on our national debt. That's it.

So the bottom line is this is really nothing more than class warfare that will fix NOTHING.

Watch this video of Rick Santelli going off on the Buffett Tax.... it's great.

YOU....ARE ABSOLUTELY, CORRECT!

But, I still think, that it has always been the middle-class that has financially supported this nation. This is plain and simple another ruse to get more money from the middle-class, not the rich. According to the "Buffet Rule", ANYONE, making over 1 million dollars a year will be taxed as though you are wealthy. That means small businesses and windfall profits from investments. A small businessman or an investor who gets lucky will be penalized. They will, undoubtedly, not be able to take advantage of the type of tax write-offs that the super wealthy does. If you read this article, http://www.huffingtonpost.com/2012/04/13/buffett-rule-loopholes_n_1423547.html , you will see that the wealthy still will have tax loopholes to take advantage of. IMO, this is a pre-election stunt. It's all fluff...Obama is trying to sympathize with the average middle-class family. He is trying to get them on his side.

Another interesting fact, Obama made, in the neighborhood of $795,000 last year. Over half of this adjusted gross income came from proceeds of his books. He also, donated the proceeds to charity. Well, charities are a write-off. In essence, Obama only paid 20.5% in taxes. The tax system in place is unfair. What I think it all comes down to...Our government does not want a wealthy nation of Americans...they want us poor! It's much easier to push the poor guy around! With the dwindling population of middle-class it appears, their plan is working.

[WallyWeaver]

IMO, this is a pre-election stunt. It's all fluff...Obama is trying to sympathize with the average middle-class family. He is trying to get them on his side.

I have not exchanged with you before Dogmatic1..... so I will begin by saying,"Hello."

I also want to say you make some excellent points in your above post. In fact you are making way too much sense for someone who posts articles from the "Huffing-and-Puffington"Post.

To go along with your main thrust I absolutley agree that our tax system is almost useless. That is a strong word but I believe it is accurate.

I do believe it is true that the middle class, specifically small-business owners, usually end up getting hurt the worst. That is a major issue since small businesses in America provide about 70% of the jobs. So yes, in that I agree with you.

Speaking of loopholes, however, it is also true that the poor and many middle-income households pay nothing or alomost nothing in income taxes because of "loop holes." In fact, in many recent articles, about 50% of American households pay no income tax. That's right, 0% income tax for these poor and middle-income households. This is also a problem.

Speaking of the rich.... while it is true that the rich also have many loopholes available to them, and some totally take advantage of the system, the "rich" in this country pay about 70% of total taxes collected. Those aren't my numbers, those are the CBO's numbers.

So to say that the rich are not paying their "fair" share is nothing but, as I said before, class warfare rhetoric. And as you rightly pointed out, a tool that is being used right before an election to garner votes.

To sum it up, here's what we've got:

1. 50% of the country pay no taxes, or, 0%

2. 10% of the country (wealthiest households) pays 70% of all the tax revenue collected by the government (http://www.usatoday....ires/50480226/1; see paragraph 4)

3. The middle-class, specifically small business owners, are also getting squeezed because Federal deficits are the highest they have ever been in US history and 50% of the population aren't paying anything in income taxes.

What does this tell me? The same thing I posted above. The Government spends WWWWAAAAYYYYY too much money and needs to cut its spending, realistically, by at least 50%. It also tells me that our current tax system needs to be tossed in the garbage. It is completely unfair and, if you ask me, is already a system of class warfare.

WW.

[Dogmatic1]

I have not exchanged with you before Dogmatic1..... so I will begin by saying,"Hello."

I also want to say you make some excellent points in your above post. In fact you are making way too much sense for someone who posts articles from the "Huffing-and-Puffington"Post.

To go along with your main thrust I absolutley agree that our tax system is almost useless. That is a strong word but I believe it is accurate.

I do believe it is true that the middle class, specifically small-business owners, usually end up getting hurt the worst. That is a major issue since small businesses in America provide about 70% of the jobs. So yes, in that I agree with you.

Speaking of loopholes, however, it is also true that the poor and many middle-income households pay nothing or alomost nothing in income taxes because of "loop holes." In fact, in many recent articles, about 50% of American households pay no income tax. That's right, 0% income tax for these poor and middle-income households. This is also a problem.

Speaking of the rich.... while it is true that the rich also have many loopholes available to them, and some totally take advantage of the system, the "rich" in this country pay about 70% of total taxes collected. Those aren't my numbers, those are the CBO's numbers.

So to say that the rich are not paying their "fair" share is nothing but, as I said before, class warfare rhetoric. And as you rightly pointed out, a tool that is being used right before an election to garner votes.

To sum it up, here's what we've got:

1. 50% of the country pay no taxes, or, 0%

2. 10% of the country (wealthiest households) pays 70% of all the tax revenue collected by the government (http://www.usatoday....ires/50480226/1; see paragraph 4)

3. The middle-class, specifically small business owners, are also getting squeezed because Federal deficits are the highest they have ever been in US history and 50% of the population aren't paying anything in income taxes.

What does this tell me? The same thing I posted above. The Government spends WWWWAAAAYYYYY too much money and needs to cut its spending, realistically, by at least 50%. It also tells me that our current tax system needs to be tossed in the garbage. It is completely unfair and, if you ask me, is already a system of class warfare.

WW.

Hello Wally!

Okay, you've got me on your facts! Since it's factual that the wealthiest cover 70% of the tax bill in this country it's only because they have LOT'S OF MONEY and probably alot more, that's not being reported. But, the percentages they pay out, is still lower than that of middle-class America. The thing about the super rich, they can hide money and they can use the system to their greatest advantage. They can buy luxury and write it off as an expense. In essence, using the tax system to fund their extravagant lifestyles. But, of course, it's not their fault, the loopholes are there to use. There is a huge difference between how the middle-class and how the rich use the loopholes.

Also, I think small businesses should be able to keep a portion of their profits to use in times of economic hardships. If a small business has any profit, our government wants it. And, they will be taxed to the fullest extent, if there is any profit left over. There is no incentive for small businesses to flourish. Our government could care less, if a small business opens one day and closes the next.

[WallyWeaver]

Hello Wally!

Also, I think small businesses should be able to keep a portion of their profits to use in times of economic hardships. If a small business has any profit, our government wants it. And, they will be taxed to the fullest extent, if there is any profit left over. There is no incentive for small businesses to flourish. Our government could care less, if a small business opens one day and closes the next.

I think we are on the same page, D1. I agree with pretty much everything you wrote.

My only contention, and I think you agree, is that how much people are paying, or what percentage are they paying, is not really the issue here. The real question is "what" are we paying for and "why" is it so much for those that do pay?

I think we all can agree, no matter what side of the fence we fall (conservative or liberal), that the government spends a lot of money on things that we don't agree with and some of it on things we are flat out against.

And the worst part of this whole discussion is we are talking about personal income tax rates. The big secret about personal income tax is that the revenue collected from it doesn't pay for any government services. All revenue (100%) collected by the government from income taxes only pays the interest on our national debt. Not one penny of personal income taxes pays for a single government service, nor does it reduce the US National debt by one penny. That's why I say the argument of the Buffet Tax is nothing but a sham.

Check this out:

Resistance to additional income taxes would be even more widespread if people were aware that:

• One-third of all their taxes is consumed by waste and inefficiency in the Federal Government as we identified in our survey.
• Another one-third of all their taxes escapes collection from others as the underground economy blossoms in direct proportion to tax increases and places even more pressure on law abiding taxpayers, promoting still more underground economy-a vicious cycle that must be broken.
• With two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government.

Link: http://www.uhuh.com/taxstuff/gracecom.htm

The bottom line is we are all paying too much taxes. We are taxed when we buy gas, we are taxed when we buy groceries, we are taxed to pay for social security, we are taxed to pay the interest on the national debt, we pay payroll taxes, we pay property taxes, we are taxed when we win a prize (lottery or Las Vegas), etc. It is insanity!

More taxes are not the issue.... we are all already taxed to the hilt. Drastically reduced government spending/ programs and huge tax cuts for everyone is what is really needed.

I personally don't think the Federal government deserves anymore tax revenue. They need to learn how to live off of what they already collect like all of us in our own personal budgets.

WW.

[Dogmatic1]

WALLY! A BIG AMEN, FROM ME. You are right, we all pay way too much in taxes! And our politicians spend frivolously!

Why isn't the GOP, tackling this thing? (I suppose, it's because they are part of the problem, as well).

BTW, those figures are sickening! So 2/3 of our taxes are essentially being thrown away. It's like giving a credit card to a criminal!

Edited April 15, 2012 by Dogmatic1

[tommy17]

I just cant figure this Dummy out, If you raise Tax on big company's, alls they do is raise there prices more to cover there loss, Like gas, it is not going to do **** for the gas price but drive it higher.This Guys a wacko job.

He doesn't care . Just like his energy secretary's response was 'when asked about high gas prices. He said good maybe people will start driving smaller cars. Idiot doesn't he know, that when gas goes up so does everything else. And there isn't even a oil shortage. Obama is the worst president ever.

[WallyWeaver]

You are right, we all pay way too much in taxes! And our politicians spend frivolously!

Why isn't the GOP, tackling this thing? (I suppose, it's because they are part of the problem, as well).

BTW, those figures are sickening! So 2/3 of our taxes are essentially being thrown away. It's like giving a credit card to a criminal!

You nailed it, D1.

I knew we were on the same page.