Tax Analysts Conclude That "Buffett Rule" Would Raise Less Than $50 Billion Over Eleven Years
The "Buffett Rule" - potential eradicator of deficits or practically a waste of time?
Earlier today, figures from Congress' official tax analysts regarding the so-called "Buffett Rule" were obtained by the Associated Press.
These figures revealed that the "Buffett Rule", if implemented, would potentially raise $47 billion over the next 11 years. According to the Congressional tax analysts, the implementation of the "Buffett Rule" would raise less than $50 billion (less than $5 billion per year) between 2012 and 2022.
Less than $5 billion a year? Considering that the country is currently posting deficits in excess of one trillion dollars, that wouldn't exactly make a big dent.
The "Buffett Rule" is named after Warren Buffett. Buffett, who is also known as the "Oracle of Omaha", is one of the most successful investors that the world has ever known.
Buffett has become increasingly outspoken in his statements regarding the economy and stock market over the past number of years, and has frequently opined that the nation's wealthiest aren't paying their fair share of taxes.
Buffett argues that there is inequality when it comes to how much tax the top 1% pay (as a percentage of their income) compared to the rest of the population. Buffett argues that those people who are earning over a million dollars per year should "pay their fair share" and pay more in taxes.
As you can imagine, Republicans have not been receptive to the "Buffett Rule", while Democrats have largely come out in favor of it. A major plank in Barack Obama's 2012 campaign will be the idea that the top 1% should pay more in taxes in order to help dig the country out of its current hole.
Republicans have seized on the data that was released earlier today, with Senator Orrin Hatch (top Republican on the Senate Finance Committee) arguing that President Obama should stop the "class warfare" and instead focus on "real proposals" that would help lift the country out of the red.
Democrats, on the other hand, are taking the "every penny counts" stance and arguing that a tax proposal should not be discounted just because it won't raise as much money as initially thought.
Source: WashingtonPost.com - Congress' tax experts say Buffett rule tax on wealthiest would raise just $47B over 11 years
Filed under: General Knowledge