How Does the "Buffet Rule" Fix our national Debt or budget Defecits?

Discussion in 'Economy' started by PLYMCO_PILGRIM, Apr 14, 2012.

  1. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    The "Buffet Rule" would raise around 5 Billion dollars a year in tax revenue according to all the sources

    Obama's Buffett Rule: A minimum tax for millionaires - Apr. 9, 2012
    Buffett rule won
    Buffett Rule: Doomed Congressional Tax Debate May Tilt 2012 Election

    Our annual budget defecits have been over 1 Trillion dollars a year

    Rising revenues narrow deficit, but for how long? - BostonHerald.com



    So 5 billion is 0.5% of our annual budget defecit, how does this buffet rule help america?


    This is a question that assumes people understand basic economics and historical data on taxes. For example, the raise of the capital gains tax has been shown to actually lower the federal captial gain's tax revenues due to the impacts as explained through the laffer curve.
     
  2. Euro
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    Euro Senior Member

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    What about raising the capital gain tax and lower the corporate tax.

    Eg. capital gain tax(15% today)-> Make it 28%.
    Corporate tax (35% today)-> Make it 22%.
    Just an example, but their are probobaly computer programs that can calculate this.

    The conecept, higher capital gain tax to stop sepculations and rich people taking out huge dividends and lower corporate taxes to stimulate corporations to hire more people.
    Then put a wealth tax on the rich that have build up large fortunes because of a low capital gain tax. A property tax on house/apartment nr.2,3 etc not nr.1(everybody should own a house)
    The potential in USA is to take in more taxes from the rich, that dont contribute enough.

    A low capital gain tax is just more welfare for the rich.
    If the capital gain tax is raised and corporate tax lowered. Corporations are stimulated to hire and rich people will have to work more since taking out capital gain will be less attractive than working.

    Since corporate tax<Capital gain tax.
     
  3. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    I like that you are thinking.

    I'm still curious as to how the Buffet Rule even comes remotely close to addressing our problem of government overspending.
     
  4. gallantwarrior
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    gallantwarrior Gold Member

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    Technically, revenue raised by implementing the Buffett Rule would be less than a drop of water in an ocean. It would punish those evil rich people, though. Those greedy, grasping, selfish rich people who refuse to share their wealth willingly would be forced to do so by government over-reach. Even more important, it would give that self-same government bragging rights to be used to convince the unwashed, uninformed electorate that they, the government, have the best interest of the unwashed at heart. And the govt will prove that by tearing down the nasty rich people to the same level as the "poor".
    Anyone with a lick of sense and a solid bank balance also has the wherewithal to remove said wealth to safer, saner climes.
     
  5. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    Like my sig line says I'm not interested in punishing or blaming people but in fixing the HUGE problems we face, the buffet rule really doesn't address any problems at all. The fact that many are portraying it as a way to pay off our national debt I find to be dishonest when a year of tax revenues from the buffet rule don't even come close to covering a week of our national budget defecits.

    It appears as an eyewash distraction from me and a distraction we can not afford as a nation. Every day we don't act we go a few billion more into debt!
     
  6. gallantwarrior
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    gallantwarrior Gold Member

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    I fully agree with you. Passing the Buffett Rule is just another diversion from issues that are very difficult to resolve, mostly because their resolution requires hard choices and unpopular action. Politicians have difficulties doing what is necessary to resolve our problems because they would become unpopular, possibly losing their plum "jobs". I prefer to believe that a politician who takes appropriate action, regardless of how "hard" it might be, would tend to curry favor with a different portion of the electorate.
    I apologize if my previous response was a bit flippant. I tire of the foolish tirades directed against the "evil rich" which foster yet another division of the people in this country.
     
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  7. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    No worries, I know how people can be on the forums ;)
     
  8. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says dem politicians is coverin' their millionaire campaign donor's butts...
    :mad:
    Senate fails to advance Buffett rule
    16 Apr.`12 WASHINGTON – The Democratic-controlled Senate failed on Monday to reach a super-majority needed to pass a tax plan offered by President Obama to require millionaires to pay a 30% minimum effective tax rate.
     
  9. Euro
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    Euro Senior Member

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    Isnt the buffet rule a 30% tax on income over 1 million$?. Then capital gain will be 30% for those who take out more than 1 million in dividends. I think it should be compensated with a lower corporate tax. More money will probobaly stay in the corporations with the Buffet rule and not rich people taking out large dividends for personal welfare.

    USA has the highest corporate tax in the world (35%).
    USA has the lowest capital gain tax in the world(15%).

    With a lower corporate tax more money willl saty in the corporations and creating jobs and getting people employed. With a low CG tax CEOs will take out large dividends since it is more proffitable to take out dividends than employing people.
     
  10. uscitizen
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    uscitizen Senior Member

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    No one action or step will fix our problems.

    That right wing mind just cannot comprehend complex answers.
     
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