Nothing gets the alt-right blogosphere more riled up than agreeing with an Obama tax proposal. Yes, I agree with the “Buffett Rule” and here are my responses to comments.
“Secret of NAM” writes:
this is about your feewings of jealous butt-hurt
There were several comments like this. They imply that I’m a loser who is complaining that I can’t make enough money to enjoy the lower tax rates enjoyed by the rich, and even worse than being a loser I’m a sore loser.
This is an ad hominem attack which has nothing to do with the argument about fairness in taxation. I’ve bought into the idea that a fair tax system doesn’t give the rich a lower tax rate on a percentage basis than the middle-class value-creating workers.
If you want to argue that it’s fair, go ahead and make such arguments without the ad hominem attacks.
“Jimmy” writes:
This argument could maybe be valid if the extra money were actually going toward reducing our debt. Or maybe for some useful purpose. But no, it goes to things like $800,000 GSA Las Vegas vacations.
We need to give them LESS money. More tax dollars only encourages the bastards.
As I’ve previously written, “the ‘starve the beast’ theory sounded plausible when I first heard it, but government spending has increased massively since Reagan first made tax-cutting popular. So I conclude that it doesn't actually work. Republicans need to use the opposite strategy. If they cut spending enough, eventually the government will have a surplus, so taxes could then be cut.”
Alternatively, if taxes are raised enough, people might complain about the high taxes and demand reductions in federal spending so their taxes could be lowered. To that end, I also endorse putting the employer-portion of FICA taxes onto people’s paystubs, and raising their salaries by a corresponding amount, so workers can actually see how much tax they are paying. And FICA taxes should also be part of the 1040 form, so once again people can see how much money they are really paying in taxes. I’m surprised that Republicans have never figured this out.
GMR writes:
What about municipal bonds? Should those have a deduction? Would the Buffett rule kill the muni market, or is there a carve out for munis?
This is a good question to ask. It appears that municipal bonds are exempt from the Buffett Rule. On the one hand, this is consistent with the principle that interest from such bonds should not be considered taxable income.
However, I disagree with the exemption. Like the itemized deduction for state and local taxes, this gives an unnecessary federal subsidy to high-spending local governments.
I don’t think this is enough of a big deal to oppose the Buffett Rule because the tax-rate difference between regular bonds and municipal bonds will be the same before and after the Buffett Rule. As I said in my original post about the Buffett Rule, it’s a step in the right direction and not the ultimate solution to all problems with the tax code and the budget deficit.
bluto writes:
The reason it's called the Buffett rule, is because Buffett owns a lot of insurance firms which sell anuities and life insurance…
This argument has come up before, that Buffett’s involvements in policy issues are a secret plot to make Buffett even richer, at the expense of everyone else.
But this sounds like too much of a stretch. Buffett is an old man who doesn’t need any more money, and he has chosen to give his money away to charity rather than give it to his children. I think that Buffett is motivated by what he thinks is altruism, or maybe it’s about leaving a legacy behind him that he made the world better for the little people.
Buffett and Gates are both Democrats. So was Steve Jobs. Learn to deal with it. Lots of self-made billionaires are Democrats and not Republicans. They support the party that supports higher taxes for billionaires.
“kawokmali” writes:
It is plain idiocy to tax INCOME of any kind, income corresponds to value creation (or at least that's what should be) whereas EXPENSES direct or indirect (thru the use of valuable possessions) is value destruction.
1. The Buffett Rule is a step in the right direction and not a complete overhaul of taxes.
2. Income tax is like the QWERTY keyboard in that we are stuck with it even though there might have theoretically been better tax systems. Anyway, there’s a very strong correlation between income and expenses, and a very strong correlation between income and the ability to pay. A tax system based entirely on purchases might not work as well as you think, and might be subject to just as many loopholes and tax cheating.
“Mercy Vetsel” writes:
It's not about fairness but about damage to the economy.
Capital gains taxes incur a very heavy dead weight loss (destroyed value) and the main effect of this is to double capital gains rates.
This is nonsense scare tactics not based on any empirical evidence. Capital gains rates were 28% in the 1990s when the economy was booming. Lowering the rates to 15% did not bring back the roaring nineties.
“John” writes:
The Buffett Rule is pure symbolism. It has nothing to do with raising sufficient funds to make a meaningful dent in the deficit. It has everything to do with the perceived fairness of the tax code.
As I keep saying, it’s a step in the right direction.
And the perceived fairness of the system is extremely important. If the people feel the system is unfair, they might vote in socialist demagogues, or there might be a revolution.
At the very least, perceived unfairness of the tax system encourages more cheating, which lowers tax revenue.
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