Decoding Buffett’s tax plan

This is a great breakdown of the Warren Buffett tax plan. He’s got some great ideas to fix the tax code and puts to rest some misconceptions about how tax increase on the rich effect job creation and investment. This article is well worth reading.

Decoding Buffett’s tax plan.

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One response to “Decoding Buffett’s tax plan

  1. DVD, I saw this article a few days ago and did give it the full read.

    On one hand, I agree that Republicans to my knowledge have not provided any statistical evidence that returning to the Clinton era tax rates will cause employers to stop hiring. Even if Buffet’s plan of only impacting folks with incomes above 1,000,000 annually were implimented I haven’t seen any historical evidence that you’d see businesses make significant changes to the way that they hired.

    From what I understand, frankly, the whole tax code needs to be revamped to remove loopholes and needless deductions and provide incentives for our corporations to create jobs in The US rather then overseas. This is largely in line with Simpson-Bowles and I believe was also in the Ryan proposal.

    Where this article loses me, and frankly most of the terrorist, radical, tea party Republicans, is with the below paragraph: “In the context of deficit reduction, $450 billion is less than 5% of the new debt the country is on track to accrue over the next decade. But it’s a lot of money in terms of potentially valuable government programs that might otherwise need to be slashed absent additional revenue.”

    You see, as we all know, the real goal of the Obama backed tax increases is not deficit reduction rather it is preservation of current entitlement programs. So, the real question that needs to be asked is, “What will you do with all of this extra money (granted $450 billion over 10 years isn’t really extra money at all since it would still leave us with nearly 10 trillion in additional debt)? The answer, I believe, is not to apply it to the current shortfall, rather, the democratic answer is to delay the fundamental changes needed to Medicare/Medicaid, SSI, Defense and Unemployment benefits.

    So as this debate moves forward, I’d say it is illogical to support the current positions of either of the two current ruling parties. Republicans publically refuse to support returning to the pre-Bush tax rates (even if accompanied by a 10-1 ratio of cuts, amazingly) and democrats refuse to ask 98%, or in this case 99.8% of the public to make any additional contribution at all to the programs they claim are a basic part of the American experience which also are much of the source of our current systemic long-term debt issues.

    Perhaps someone with some real balls will come along (from which party I no longer really care) and completely change the conversation to one that makes sense from a fiscal standpoint. To this point that person has yet to arrive to the dance…

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