The Problem with the Buffet Rule

I follow Barrack Obama on twitter. Recently every tweet has been about the “#BuffetRule”. Reason after reason why the rich should pay as much or more as a percent of their income in taxes as the middle class and poor. On the surface I get it – but are we asking the wrong questions?

I mean I saw this push a mile away. When Buffet first published “his” article (or at least an article he endorsed that his secretary probably wrote for him) I knew a push for higher taxes was coming. All in the name of “the rich paying their fair share”. But why are we asking ANYONE to pay more taxes. The rich paying more taxes doesn’t mean the rest of us win, just that we all lose.

Instead of asking the rich to pay more taxes to catch up with the rest of us, why not lower taxes for everyone else? I know an increased tax on the rich will not benefit me. They’ll probably use it to buy more body scanners that I’ll have to opt out of in the airport. Or maybe they’ll find another country to invade in Africa.

If Obama wants this so bad why doesn’t he promise 100% of it to education or food for the poor? No one knows for sure where the extra cash is going. I mean, why are we trusting the Government with MORE or OUR money? Oh, all for Universal Healthcare and to “level the playing field.” Right? I doubt it.

Currently the US pays as much or more in taxes as any country on the planet. Notice how many of those countries have Universal Healthcare. In fact I just returned from Japan who pays about the same tax rate as us, but has Universal Healthcare. How can they do it, but we can’t? Maybe it’s because WE are the Japanese military!

So why are we agreeing to MORE taxes again?

Any good business man (even bad ones) will tell you that the easiest way to add to your bottom line is to cut expenses NOT add revenue (via taxation for the government). So why aren’t we focused on balancing the budget and maybe, just maybe, cutting back on the military. Why are we concerned about getting involved in Africa and staying involved in the Middle-east. I thought this was the “peaceful” democratic party!

If it doesn’t bother you that our Government can find excuse after excuse to increase taxes instead of lowering them for the rest of us – then we have lost. We will continue war-mongering. We will continue deficit spending. We will continue giving more and more power to those who already have it.

If you really think that raising taxes on the “rich” will in any way benefit you, you’re crazy. If you think this isn’t benefiting the most powerful “1%” – then you’re wrong.

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5 thoughts on “The Problem with the Buffet Rule

  1. Pingback: Tax The RICH! Sounds Good, Solves Little « The Long Version

  2. philebersole

    I think the record indicates that cutting taxes does not in and of itself result in cutting government spending. The incentive to cut spending comes when there is a requirement that taxes be high enough to cover the non-emergency expenses of government.

    It is like an individual who has to pay for things with cash, versus putting things on a credit card.

    Reply
    1. Atticus Finch

      That is true Phil, but its kind of like saying “the Government’s gonna spend the money either way, may as well give it to them…”

      I just wish that instead of increasing taxes the Government would cut spending – especially in areas where it includes military not acting directly in national defense.

      I just think the path of trying to get people to support additional taxes on the rich as some sort of “get even with the rich” scheme is a slippery slope. I think everyone should contribute equally, but why not just lower taxes for people who actually need it?

      It’s kind of like saying “the rich have easier access to healthcare than the poor, so we’re going to make it harder for the rich – just to even things out” when instead it would be easier to just make healthcare more accessible to the poor too….

      I just think the tax/spending question needs to be reframed.

      Reply
      1. philebersole

        The Buffett rule says that millionaires and billionaires should be taxed at the same effective rate as middle class folks. That’s not class warfare, by my definition.

        The reason people in the Warren Buffett class are taxed at a lower rate than their secretaries is that income from ownership of financial assets is taxed at a lower rate than (middle class) income from the work of hands and brain.

        There was a time when “unearned” income was taxed at a higher rate than income from wages and salaries, which I don’t advocate; I think all categories of income should be taxed at the same rate.

        The experience of the Reagan administration and the Bush II administration shows that cutting taxes does not in and of itself constrain spending. The government just pays its bills with a credit card instead of a debit card.

        As I see it, you can’t bring down spending without deciding what you want to stop spending on. That’s very difficult, while just cutting taxes is easy.

        Reply
  3. Pingback: Best of 2012 – April « BlogTruth

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