Today President Obama announced yet another tax proposal to reduce out debt. This tax increase is only on the real millionaires and billionaires. The thousandaires (i.e. those making more than $200,000 whose taxes will rise if the Bush tax cuts expire, as the President desires) won’t have to worry about this new proposal.
The Buffett tax is the result of gabillionaire Warren Buffett’s statement that his tax rate is lower than his secretary’s. The reason that is true I’ll leave for another post, but, let’s look at the President’s proposal.
The President wants to establish a minimum tax rate for the true millionaires and billionaires presumably to insure that the Warren Buffetts of this country pay the same tax rate as the Warren Buffett secretaries of this country. So far, the President hasn’t told us what that minimum tax rate is, but, whatever it is, it will do little to reduce the debt, assuming, of course, that the President intends to use any of it on debt reduction.
In 2009, we had 22,000 taxpayers who earned more than $1 million a year.
Those earners are expected to pay an average of $845,000 this year…
Let’s say the President doubles their taxes… we are $15 trillion in debt, so an extra $845,000 per year in taxes multiplied by 22,000 taxpayers will erase our debt in… My head hurts.
But, something else occurs to me, and that is the President’s choices. First he appointed Timothy Geithner as his Secretary of the Treasury (the man in charge of the IRS), and soon thereafter, we learned that Mr. Geithner did not pay all of the taxes he owed.
Now we have the President pointing to his friend Warren Buffett as someone who wants taxes to increase. Mr. Buffett is currently contesting tax returns going back to 2002. And, if the IRS is correct, Mr. Buffett owes close to $1 billion in back taxes.
Personally, it’s hard to take the President seriously on taxes when Geithner and Buffett are his “go to” guys.