Eight months ago, Warren Buffett, chairman and chief executive of Berkshire Hathaway, wrote an op-ed for the New York Times headlined, "Stop Coddling the Super-Rich," a group that included, of course, the author of the piece. The column turned out to be one of the most important op-eds of the year -- it gave rise to the proposed "Buffett Rule."
The point is pretty straightforward, and at first blush, a simple matter of fairness: proponents of Buffett Rule want to correct a flaw in the existing tax system: thanks to various loopholes and giveaways, very wealthy Americans can end up paying a much lower tax rate than working families. It's a problem President Reagan described as "crazy" during his second term.
A quarter-century later, Reagan's party no longer agrees, and Republicans have opposed any and all efforts to correct the tax imbalance. Democrats, meanwhile, aren't letting this go.
In his weekly address, delivered over the weekend, President Obama helped set the stage for the coming fight.
For those who can't watch clips online, Obama explained that Buffett "is paying a lower rate than his secretary."
"That's not fair. It doesn't make any sense. Do we want to keep giving tax breaks to the wealthiest Americans like me, or Warren Buffett, or Bill Gates -- people who don't need them and never asked for them? Or do we want to keep investing in things that will grow our economy and keep us secure? Because we can't afford to do both.
"Now, some people call this class warfare. But I think asking a billionaire to pay at least the same tax rate as his secretary is just common sense. We don't envy success in this country. We aspire to it. 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.
"That's the America I believe in. And in the next few weeks, Members of Congress will get a chance to show you where they stand. Congress is going to vote on what's called the Buffett Rule: If you make more than $1 million a year, you should pay at least the same percentage of your income in taxes as middle class families do."
When it comes to Congress approving the Buffett Rule, Democrats have low expectations. But given the electoral context, they're nevertheless eager to get every member on record.
And that's going to happen, at least in the Senate, fairly soon.
The Hill reported that Senate Majority Leader Harry Reid (D-Nev.) has already begun the procedural steps to line up the vote in the chamber two weeks from today.
Senate Majority Leader Harry Reid (D-Nev.) will file for cloture Thursday and set a vote on the so-called Buffett Rule, which would raise taxes on those making more than $1 million annually.
A Senate leadership aide told The Hill that Reid plans to vote on the rule on April 16.
In case this isn't obvious, the fight has sweeping implications. For the Senate, Democrats are eager to put Republicans, especially vulnerable GOP incumbents like Scott Brown and Dean Heller, on the spot, testing their willingness to fight for tax loopholes that benefit millionaires and billionaires.
But there's also the presidential race, in which the likely Republican nominee, Mitt Romney, is extremely wealthy thanks to a successful career as a vulture capitalist. Romney takes full advantage of the existing loopholes, allowing him to pay a 13.9% rate on the millions he receives every year from the firm at which he no longer works.
The question for congressional Republicans, then, is whether they support tax fairness or whether they want to keep allowing Mitt Romney to pay a much lower tax rate than America's middle class.
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Charles Sykes’ latest book, A Nation of Moochers, has a lengthy list of “unfair” expenses that are thrust upon upstanding taxpayers. Most of his diatribe is about “his” taxes supporting “them”. Needless to say, Paul Ryan wrote a supportive blurb.
Until all Americans are earning a living wage, then government safety nets must remain in place. And that takes money.
The measure will be defeated because of what Dr. Paul Krugman called the "pink slime" of GOP politics this morning. The House passed Paul Ryan's budget that would destroy the most-vulnerable while adding trillions to the deficit simply to give even more tax breaks to those who need them the least. So it stands to reason Sen. Mitch "Mumbles" McConnell and his pals in the Senate will vote against the Buffett Rule because, hey, we all know that people earning a half-million dollars a year - or more - have it tough.
May I suggest to Buffet and all the others who get this tax break and the Big Oil who says they do not need our subsides to SEND the money back to the Department of the Treasury. Mark it for deficit reduction only! Please!
sorry mary, but having the super rich "voluntarily" paying their fair share doesn't cut it. that's just another foolish gop talking point.
How is that even legal? Can the IRS or the Treasury Dept just keep money that is not owed according to the tax code? That seems like an odd idea.
The Large Corporations are using the GOP and making them look like fools. How long can they keep playing this game, how much money do they really need?
I was going to say that the super-rich can voluntarily pay more in taxes, simply by filing a simpler return, filing all income as "earned," not listing their donations, etc. Taking the "standard deduction" and not filing a Schedule A. Theoretically, this would work to some degree.
But you can't just "overpay." I missed a deduction one year, and the IRS corrected it and increased my refund!
This will never happen.
Although many will blame the Republicans, the Democrats and President Obama are more to blame, in my opinion.
We KNOW that the Republicans will fight tooth and nail against any tax increases on the rich.
If the Democrats, and especially President Obama, fought with half as much fervor, they would get this done. Instead we'll get a week, or two, of teeth gnashing and crocodile tears and then the Democrats (especially those in the Senate, including Reid) will fold to the Republicans AGAIN.
We KNOW that the Republicans will fight tooth and nail against any tax increases on the rich.
The idea that Ryan's plan will raise taxes on the rich by closing loopholes is absurd. "Loopholes" refers to middle-class itemized deductions that are phased out for the rich. What Ryan intends to to raise taxes on the middle class and give the money to the rich with tax cuts, not a penny going to the government to increase services that balance the tax hike.
The other term is "entitlement reform" which is to borrow a bunch of money, give it to the rich, then use the debt as an excuse to cut Social Security and Medicare. I believe that is where Ryan plans to balance the budget, by robbing FICA out of workers' paychecks.
Bestinshow, Unfortunately, I think there are Democrats who are not willing to say Goodbye to the money just yet. They found themselves on the wrong side of the aisle when it comes to money..I think these are the same Democrats who vote Republican sometimes. Their Gods are fighting it out...The Religion God or The Money God.
Democratic Party needs (I hate to say it) a Frank Luntz.
They should stop calling this a tax increase for the rich. It is not...the proposal ask to bring the rate for those making 1M or more (not even back) to where it was before. So...call it "Reagan's Rule Resurrection Act" or "Patriot Tax Reform" whatever it is that will rub the Tea Party ego the right way and give them the wall when they reject (obviously I'm not Frank Luntz, otherwise I'd go volunteer). Hey, they were willing to have their phone be tapped, medical record and library record search without warrant for something called the "Patriot Act", they will be willing to do anything that sound good.
One thing I learn the past few years is that people don't pay attention to what's in the bill...They only go with the name of the bill. I mean...who can say no to "The Right to Work" bill? Or the "Free Industry Act" that will basically:
(1) exclude from the definition of the term "air pollutant" carbon dioxide, water vapor, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride; and
(2) declare that nothing in the Act shall be treated as authorizing or requiring the regulation of climate change or global warming."
Yeah, it's not like sheep are hard to fool.
What really struck me was although Gingrich earned much more than your average bear, he still payed a tax percentage more in line with what I would expect from a fair tax structure. Nice to know a Tiffany's tab remains non-deductible. Now if only it weren't so lucrative to destroy companies and jobs.
Puhlease, of course it won't pass! It won't pass because too many in Congress depend on the "BIG MONEY" donors for their campaigns, because with 240 millionaires in Congress you don't think that they would vote to raise their own taxes, because they've got the sheeple thinking that it would be "redistributing the wealth", and because these people in Congress - are traitors to working Americans!! The day the sheeple actually wake up and see the crap that they've allowed themselves to believe - that will be the day that the GOP as a party will be totally rejected!
I think the Sheep may be comfortably rich they have no idea though how rich their Shepherds are. And if the Shepherd has to choose between the sheep and the Lion(lyin') who will win?
>> Do we want to keep giving tax breaks to the wealthiest Americans like me, or Warren Buffett, or Bill Gates -- people who don't need them and never asked for them?
Here's the problem: The super-rich have asked for tax breaks. They keep asking for -- no, demanding -- them.
Most of the wealthiest Americans are not like President Obama, Warren Buffet and Bill Gates. Wake-up religious zealots, there's your Immorality.
How You doing?
Agreed, that most millionaires are not in favor of higher taxes. At minimum, most would prefer to be philanthropists, giving that money to the causes they believe in, rather than allowing congress to spend it.
I don't count political contributions as philanthropy, of course. But I suppose some billionaires think they are "saving the country" by buying ads to slam candidates they don't agree with.
Some of these ads are so dark and scarry. Almost Satanic.
Other than making progressives feel good, what will accomplish? It will bring in more money to pay for the entitlement binge the Pres has set out on. Until the tax code is rationalized, and we stop picking favorites, it will still be a mess.
You may have been able to use that argument in the 70's. It doesn't apply to what is happening here. Americans do not suffer from amnesia. When you have lost your job, when you have lost your home, when you have lost your dignity, when you have to watch every penny you spend. BY NO FAULT of your own. When you have to choose between heat and food on the table. When you have worked for 39 years and have nothing to show for it. When your ancestors were not allowed to invest. When you go to sleep every night worried about your childrens' future. Then you can come back and give us your opinion. You have sisters and brothers that have been dealt a hard cruel blow. We are all just trying to find our way. It is not a hand-out that you are suggesting, It is the difference between life and death for some. And I myself don't want to see someone die if it can be prevented. I am my brothers' keeper. aka....likeaprayer.
Until the tax code is rationalized, and we stop picking favorites, it will still be a mess.
Exactly! We need to rationalize the tax code by raising taxes on the rich to eliminate the deficit. It's time to stop picking favorites with tax handouts to the rich!
It will bring in more money to pay for the entitlement binge the Pres has set out on.
Agreed! Damn Obama for extending tax cuts for the rich. No more entitlement handouts for the rich. They can earn their money like everyone else.
While I am also cynical about the situation of getting something like this passed , imagine if the dems and obama never even brought this up and busted it over the gop heads ? If we get momentum behind this , more people get motivated to fight for the right thing , instead of giving up and being frustrated with EVERYTHING in DC ..
The President articulated the point very well there , and I feel fortunate to have someone in power that is willing to say these things , now I will write my reps and tell them to be more raging bull on these issues and this legislation , and they need to make a big stink about it , till the media can not ignore it
Patango, your comment is refreshing.
Thank you.
Is there a list that shows what exactly rich Corporations have done as far as their part in helping our economy. Have they lowered the cost of their products to help us out? Have they been fair in giving fact only advice to clients? Have they stopped speculating? I'm having a real hard time paying my bills and they keep going up in price. I'll have to disconnect my cable next uh-oh no more MSNBC. I wish MSNBC could be part of the basic cable plan. Is there a list of donations that the Corporations have made to help struggling institutions which benefit the Middle Class and the poor. What exactly have they done to help with this current crisis that we're going through. I support The Salvation Army and I always help out my neighbors and family when I can. How many jobs have they created lately? Do you think they can help us out with our deteriorating roads and bridges. I'm not even sure I heard them say "Thank You". I would certainly be very thankful if they helped us out down here.
This is merely theater for the upcoming elections. Dems will use the "fairness" issue that is the Occupy theme as an election prop. But do not mistake this as a serious effort because the Dems know it will not pass and if there was a possibility that it would pass, the lobbyists would be out en masse. Tax reform will not happen because the rich and powerful will stop it at any costs.
How do Lobbyist get away with bribing our elected officials? This is extremely dangerous. Is there a list of All the Corporations that donate to our Elected PUBLIC Officials? Is there a list of all the Lobbyists and who they work for? Is there a list of which Congressman took donations and from what Corporations?Is there a list of What each corporation is lobbying for and why? Why don't lobbyist contribute to my account? Why haven't any lobbyist tried to contact me?
Thanx Trollop , I like your nic there
Great point Shumuwada , on the one hand we have these types saying the debt is destroying america , then they demand a tax cut? They cheer lead and get the flags out to invade iraq , Then demand tax cuts? These people are beyond disingenuous and should be called on it in the msm
The wall st philosophy is to ship all the jobs over seas and cut costs , not WHAT IS GOOD FOR AMERICA AND MY COMMUNITY ? , then we are all suppose to be beholden to them ? for what?
I have had to cut back on everything also , no more cable ,( and i miss rachel dearly lol ) what have the wall st clowns cut back on , while they demand more tax cuts?
Greed is a disease much like cancer except it takes a little longer to kill it's victims. Egotism is also a disease. There unfortunately are a lot of innocent people being hurt because of the Ginormous Egos. Power is now in the hands of the wrong people, these people are sick most of them have 2 diseases which in effect are working to together to destroy Decent Humanity as we know it.
They call us "muppets " to soften the blow that the effect of their own conscience is having on them. That's how they sleep at night. Ask Trump. He hosts a Reality TV show to try and give some poor slob an opportunity to be as rich as himself. This is his way of releiving his conscience. He then is trying to prove to the rest of the world that Muslims are bad people. Hence, an example of what Power can buy you. Your own soapbox so you have an arena to spout off your own prejudism. Apparentally rich does not = intellegience. Sometimes rich=ignorance.
To the "BUFFETT RULE" we should add:
Close the "ROMNEY LOOPHOLE".
As long as the GOP cult worships Grover Norquist and his idol THE PLEDGE the Sacred Rich will flourish. Money is the root of all.....GOP.