MercoPress. South Atlantic News Agency
Obama administration unveils “Buffett rule” to tax all millionaires a minimum 30%
The US administration of President Barack Obama formally unveiled on Wednesday the “Buffett rule”, legislation to ensure that all millionaires would pay a minimum federal tax of 30%. Read full article
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Disclaimer & comment rulesUnfortunately, the author failed to report some minor facts.
Feb 02nd, 2012 - 02:39 pm - Link - Report abuse 0First of all, income earned from investments, which are taxed at 15%, come from “profits” the companies in which they invested. Those company profits have already been taxed. So, the 15% tax is literally a double tax on the same income. One pays a much higher on ”adjusted gross income, which is after certain legal deductions, BUT, the company, who pays those salaries DOES NOT pay taxes on that amount.
Now, the second minor detail is, Mr. Buffett's secretary is not your average secretary the author would have you believe. That lowly secretary earned over $250K in salary last year, plus a substantial amount of earnings from investments, just like Mr. Buffett. The tax she paid on investment earnings was exactly the same a Mr. Buffett... 15%.
There is a third minor detail as well. That is, Mr. Buffett only takes $100K per year in salary, which is taxed at a much higher rate, than the 15%. However, his overall tax rate FROM EARNINGS (salary) was much lower than his secretary, because his secretary earns more than twice what Mr. Buffett earns in salary.
It would be really nice, if the “progressives” would tell the whole truth and not just enough of it to make their case for massive redistribution of wealth. Besides, even if the US government confiscated ALL the earnings of everyone earning more than $1 million per year, it would not even put a dent in that national debt, than Mr. Obama is now using to drive a wedge between all Americans.
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