..and Daniel Gross finds faults with his proposal. Not just Mr. Gross but most of the Republican establishment.
Mr. Buffett wrote an editorial for the New York Times, in which he lays bare certain facts. Eye openers (if your eyes weren’t open till now, that is).
– Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.
– Since 1992, the I.R.S. has compiled data from the returns of the 400 Americans reporting the largest income. In 1992, the top 400 had aggregate taxable income of $16.9 billion and paid federal taxes of 29.2 percent on that sum. In 2008, the aggregate income of the highest 400 had soared to $90.9 billion — a staggering $227.4 million on average — but the rate paid had fallen to 21.5 percent.
Daniel Gross, economics editor at Yahoo! Finance, says that the only reason Mr. Buffett wants to do this is to “build that much goodwill”. He also adds, that if Mr. Buffett wants he can simply write out a check to the IRS with whatever amount of money he thinks he should sacrifice. The idea that if tax rate increases, over 200,o00 households earning more than $1 million a year will be compelled to pay more in taxes, is conveniently overlooked.
The fact of the matter is, spending cuts and tax increase needs to go hand in hand to reduce the federal deficit. This is not anymore an either-or scenario. Cuts and tax increase. Reality. No one likes to see more from their paychecks disappear as tax, including me. But this is the only way forward.
And how much did Obama manage to get tax increase as a percentage of the deficit reduction deal? 0%. That is zilch. To paraphrase Bill Maher (I couldn’t find the link for this quote): “The country is approximately half Democrat and half Republican. The top 1% of earners are Republicans, but the rest 49% of the country, what are you thinking?!”
It just boggles my mind how ordinary middle class people are so opposed to even the idea of raising taxes on the top 1% (or doing away with the Bush-era tax cuts). Do they seriously believe that they are going to in the 1% in their lifetime? I just don’t get it.