If Warren Buffett and President Obama have their way, a big new tax will be named after the billionaire who wants to be taxed more. (Never mind that he’s free to pay all the taxes he wants.) The details are sketchy, but Obama wants to make sure millionaires and billionaires pay their fair share.
With a special joint Congressional committee starting work to reach a bipartisan budget deal by late November, the proposal adds a new and populist feature to Mr. Obama’s effort to raise the political pressure on Republicans to agree to higher revenues from the wealthy in return for Democrats’ support of future cuts from Medicare and Medicaid.
Mr. Obama, in a bit of political salesmanship, will call his proposal the “Buffett Rule,” in a reference to Warren E. Buffett, the billionaire investor who has complained repeatedly that the richest Americans generally pay a smaller share of their income in federal taxes than do middle-income workers, because investment gains are taxed at a lower rate than wages.
Mr. Obama will not specify a rate or other details, and it is unclear how much revenue his plan would raise. But his idea of a millionaires’ minimum tax will be prominent in the broad plan for long-term deficit reduction that he will outline at the White House on Monday. (Read More)
Obama’s going to have trouble getting this through Congress. Republicans are already balking.
House Speaker John Boehner said Thursday he would oppose tax increases to reduce the deficit. Boehner has urged Congress’ deficit “supercommittee” to lay the groundwork for a broad overhaul of the U.S. tax code.
The panel has almost unlimited authority to recommend changes in federal spending and taxes and is working against a deadline of Nov. 23.
Boehner said the panel has “only one option, spending cuts and entitlement reforms,” a reference to government benefit programs such as Social Security, Medicare and Medicaid.
A talking head on TV right now is saying “maybe this is all about politics.” Ya think? Well, if it somehow passes it will also be about cronyism, corruption and taking from the rich to give to the rich.
If President Obama was really serious about cutting the deficit, he would call for eliminating baseline budgeting. It’s a total scam, spending cuts are nothing but reductions in automatic spending increases. But he won’t tell you that.
Update: Political Byline linked – thanks.