Rhetoric aside, the facts are well known. The so-called “rich” fund most of the government. They pay most of the taxes. With the tax cuts of George W. Bush, half of all working Americans don’t even pay federal income tax! The reason Buffet’s secretary is taxed at a higher rate is because she is still earning a paycheck and paying income tax on it. Back when Buffet’s primary source of income was a paycheck, guess what? He was taxed at a higher rate too. He paid his income taxes all along the way. Then, he used his ingenuity, began investing, and more and more of his “income” was made off of money he already paid income taxes on. That’s why his rate is lower.
With the Buffet Plan that Obama has outlined, everyone making $200,000 or more would see his or her taxes go up. Unemployment is still high, yet Obama wants to tax the job creators even more. How is that supposed to create jobs?
Now, Buffet has laid down a challenge to Congress. As reported at Fox Business: “The billionaire is now offering to donate $1 towards paying down the national debt for every dollar donated by a Republican in Congress.” The offer doesn’t cover Senate Republican Leader Mitch McConnell. For him, Buffet said he would pay $3 for every dollar donated by McConnell.
Perhaps Buffet wanted some air time again or was just bored, but nothing in his challenge makes any sense. The problem is not about taxes. The problem is about spending. The federal government spends too much money! Spend less, tax less. What’s so hard to understand about that?