Today, the Senate will vote on a motion to proceed to the Buffett rule, formally known as the Paying a Fair Share Act. This concludes a two-week push by Senate Democratic leaders and the Obama Administration on the bill, and the larger conversation around tax fairness and the need for the rich to pay a higher amount than those in the middle class. On a conference call just now, Senator Sheldon Whitehouse, the primary sponsor of the bill, described it as a return to a progressive tax code, rather than a gimmick. “Until very recently, this has been the economic policy of this country for decades if not generations,” Whitehouse said. “The gimmick has been the little trick that has allowed high income earners to pay less on taxes.”
Unfortunately, Whitehouse is mistaken on a couple fronts. This is a gimmick in the sense that nobody expects the legislation today to pass. While Whitehouse and Chuck Schumer both said on this call that they “expect to pick up some Republicans” in the vote today, they made no guarantee that they would get the seven Republicans needed to push past the 60-vote threshold and move the Paying a Fair Share Act to the floor. In fact, I would actually be surprised if they got more than Susan Collins’ vote today on the Republican side, if that. The schedule calls for a vote at 5:30 pm ET.
Schumer described “cracks in the dam” of Republican opposition to higher taxes on millionaires generally. The aforementioned Collins (R-ME) endorsed a millionaire’s surtax that would somehow exempt small businesses, and Congressman Rick Crawford (R-AR) suggested a millionaire’s tax in broader legislation that included a balanced budget amendment. But these are hedged positions, and none of them relate to the Buffett rule, which would set what amounts to a millionaire’s minimum tax.
The legislation has been criticized for not taking in a great deal in revenue. The CBO forecasts it as raising $47 billion over 10 years. However, if the Bush tax cuts are extended, that number rises to close to $160 billion, according to outside projections. Anyway, Whitehouse said, this is a matter of tax fairness as much as it is revenue. “It’s a little bit ridiculous that we have people making these enormous incomes and paying lower tax rates than those who are solidly in the middle class and working hard to get by,” he said. “This is a question about Washington, whether this town is so captive to the special interests that they can’t do something that is sensible and fair.”
“If (Republicans) think fairness is a gimmick then they’re just completely out of touch with the American people,” Schumer added.
Other observers have wondered why Democrats wouldn’t simply move to change the underlying policies that create the tax inequity on high-income earners. For example, most of the reason that so many millionaires pay a smaller percentage in taxes than middle-class earners comes from the preferential tax treatment on capital gains and dividends. Why not just raise them back to 35%, instead of their current position at 15%? Whitehouse claimed that his legislation catches the capital gains tax break “but also many others that might be involved.” Since you can defer capital gains and time their release to whatever tax year you choose, that’s not entirely true.
When the bill fails today, Schumer says that Senate Democrats will continue to press the issue. He suggested that they may tie the revenue increases from the Buffett rule to specific items that revenue would pay for. “We could tie it to helping kids pay for college… helping small businesses with the R&D tax credit… we could tie it to deficit reduction,” Schumer said. “There are lots of ways the American people would prefer to spend $47 billion than tax breaks for millionaires and billionaires.”




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Look over here people. Bad republicans refuse to have the rich pay more. Aern’t we all shocked, shocked I tell ya. If only democrats were in control!
Lather, rinse, repeat.
edit. Mods, why isn’t this feature on all the time.
Look over here people. Bad republicans refuse to have the rich pay more. Aren’t we all shocked, shocked I tell ya. If only democrats were in control!
Lather, rinse, repeat.
Zero, him be so sad!!! The most recent poll shows the Mittster leading Zero. Trade one bum for another bum.
Why don’t the Democrats use budget reconciliation to pass this measure? This assumes they actually want it to pass, of course.
Call me cynical but I don’t think they want it passed so much as they want to use it during the campaign.
what a ridiculous way to frame this discussion, it loses the debate all by itself and it’s people like yourself david who facilitate corporate depravity
the buffet rule is NOT there to get “the rich paying more then those in the middle class” it’s about them getting closer to paying the same amount
you really have to stop helping the rich with posts like this david, it’s starting to piss me off already
If this was about fairness Obama – with his large six figure income – would be paying more in taxes than his secretary, but instead Obama doesn’t think its fair for this rule apply to his income. If Obama wanted to be “fair” while not starving the beast, he’d just let the Bushbama tax cuts expire.
they aren’t even associated with bush anymore, even though you attributed those cuts to both, they are entirely obama’s now
I’d also like to know how earning $999K per year makes one “middle class” but with just $1K you’re suddenly “rich.” Like geesh, if you make $500K per year your a 1%er, yet somehow they are being re-defined as the new middle class. This is just so totally warped in any number of ways where now only 0.5% of the population is considered “rich” while those making $900K and must be protected as part of middle class.
Sometimes cynical is just good sense!
You can call me cynical jr then. I second the sentiment.
We could form the Lily Tomlin Party (no matter how cynical I get I just can’t keep up) :)
Make that 3. They MUST have another item on the agenda. This thing is DOA.
There needs to be better definition in terms of defining middle class. If the median income in this country is something like $50,000 then middle class shouldn’t be defined as 20 times that amount.
I totally get that some places are more expensive to live but it seems pretty ridiculous to redefine middle class so we can make those living in NYC and San Fran more comfortable with the fact that they live in a very expensive area.
Because Democrats are for tax inequity and they’re also for starving the beast and austerity. Afterall the poor middle class 1%er Obamas with their nearly $800K income should only have to pay 20% in taxes since that is the model of fairness.
Austerity and starving the beast. This is moving the ball on who is considered rich. Obama at first defined “middle class” as $250K and now he’s increased it to $1M. Then again, if you’re making $50K, he has no problem forcing you to pay corporate welfare to the insurance companies, which that profit protection tax isn’t supposed to be considered a tax.
It’s sweet that they are going to tie this is with their researching which special interest group is most profitable though dontcha think? College students or “small businesses” which group wins the lucky Democratic talking point only to be thrown under the bus following the election award? I’m on pins and needles.
I tend to think small business. That way they can do just like they did with the bipartisan JOBS Act and create loopholes to benefit big business.
not to mention it maintains the myth about how the government pays for things and what taxes do.
hmm is this the same buffet that owes the IRS 1 billion in back taxes, and got bailed out big time in 08, or is this a different buffet. I want to know will Buffet’s passport be taken by the IRS, now the congress is rushing through legislation that just an IRS lien can result in NO passport
If the left would focus on the important stuff instead of what sounds good they might get part of what they want. Republicans would have been fine with letting the Bush rates expire, but the left had to go the class warfare route and treat one group differently than the other. Republicans would have let the carried interest provision change, but all the strings attached killed it.
Meanwhile back at the ranch, the 1% as a group already pays 30% effective rate on income, SS and Medicare included. Perhaps you folks should consider that in the US, punishing people just for the fun of it is still not popular.
http://www.cbo.gov/sites/default/files/cbofiles/attachments/AverageFedTaxRates2007.pdf
Great! Now fake passports will be even more expensive!
I was actually hoping the Buffett Rule was kabuki theater, because I don’t want anything to pass that can be used as an excuse to extend the Bush-Obama Tax Cuts For The Rich a second time.
Pay close attention people, the Republicans are telling you who they really are, tax cuts for the wealthy, NOT FOR YOU! My latest cartoon is about this latest filibuster from The Party of NO!
http://www.whatnowtoons.com
Left of center independent political cartoons