President Obama has revived his calls for tax hikes on millionaires and billionaires. He seems to have forgotten about the Buffett tax, and now wants to let tax rates go up on American couples earning over $250,000 per year, or singles making more than $200,000 per year. What he isn’t telling you is that his proposal won’t hurt millionaires and billionaires. The people who have already made their millions will do just fine. Just look at a few of the people who are employed in the White House.
White House Communications Director Dan Pfeiffer, Press Secretary Jay Carney, Cabinet Secretary Chrisopher Lu, and senior advisers David Plouffe and Valerie Jarrett would all benefit under Obama’s plan to extend current tax rates on annual incomes below $250,000. Each of them earns the maximum White House salary of $172,200 per year, records show.
“It seems hypocritical,” said Douglas Holtz-Eakin, president of the American Action Forum and a former director of the Congressional Budget Office. “These people benefited from these low rates when they made their millions, and will continue to benefit, while making it harder for other people to reach their level of success.”
“High marginal tax rates don’t hurt those who already made their money,” said Ryan Ellis, tax policy director at Americans for Tax Reform. “They hurt those trying to get theirs. It’s pulling up the ladder.”
Jarrett’s net worth is between $3.3 million and $13 million. Lu is worth between $2.3 million and $5.2 million. Plouffe is worth as much as $3.6 million, Carney as much as $3.2 million, and Pfeiffer as much as $2.1 million.
Net worth on financial disclosure forms is listed in broad ranges. Only Pfeiffer has a minimum net worth below $1 million. (Read More )
What this tax increase would do is hit small businesses that create jobs and keep them from hiring, and as Ryan Ellis noted above, it will keep others from becoming millionaires like Valerie Jarrett, Jay Carney, David Plouffe and the others. It’s not a tax on millionaires and billionaires, it’s a tax preventing the rest of us from any hope of climbing the ladder.