Home > Debate Club > Should the 'Buffett Rule' Become Law? > Reducing Spending, Not Taxing Millionaires, Is a Real Solution

Reducing Spending, Not Taxing Millionaires, Is a Real Solution

"Buffett rule" does nothing to solve long-term fiscal challenges, would raise little revenue, and is actually unfair

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I hear arguments on both sides. Liberals say taxing the rich will not kill jobs because consumer spending creates jobs not lowering taxes. This is actually true. Look at the Clinton years. Liberal touted how Clinton raised taxes and the GDP was higher than in the Bush years. The argument is what you call a strawman argument. The GDP under Clinton was 100% due to the internet and personal computer market which ended in 2000 right before Bush took office (anyone heard of the tech bubble). If it were not for the internet the 90s would of had similar GDP numbers as the Bush years. So if consumer spending is what creates jobs, which it is, raising taxes on the rich would take spending money out of the economy and could indirectly slow job growth. The rich account for almost 40% of all consumer spending in America so it goes to reason that if you take $20,000 away from them they may spend less money buying things. I think both sides owe us an honest assessment of taxes and the affect on the economy. I hate political rhetoric and think both sides are hurting america.

ohiodale of OH 8:10AM July 26, 2012

1. It is fair.

2. It does not need to address every fiscal concern to be a Good Idea.

sean s. of WI 3:31PM April 16, 2012

The Buffet Rule is a good start to show the inequities in our tax laws. Those with the money write the tax legislation to help themselves avoid paying their fair share. We need to get money out of our elections, for our corporations should not be buying our elected Politicians.

Robert Suttin of CA 3:28PM April 16, 2012

Your argument relies in the idea that debt is the real issue which plagues that American economy. This is a falsehood. While I agree that it would be unfair for these people to be paying a larger tax percentage, these people generally currently pay less as a percentage of their overall income than those in the middle class.

As for these people paying a overall amount of taxes, this is not by virtue of their high tax rates or over-taxation, but rather by virtue of the fact that they control most of the money. The top 1% of earners in America holds around 40% of the total wealth.

Spending cuts are also not the answer to our economic problems. For an economy to work, money has to change hands. For an economy to work well for everyone in it, this money needs to maintain upward momentum, i.e., from the poor to the middle class to the wealthy. The current system of taxation allows for the wealth to stay stagnant in the hands of the wealthy or for it to only flow amongst the wealthy.

Anonymous of IN 2:49PM April 16, 2012

Increasing tax rates on millionaires has a positive ripple effect on the economy as millionaires invest in tax deductible ventures that otherwise don't make economic sense. Remember the Investment Tax Credit? A huge boon to GDP.

I go with Buffett in this one Dr. J.

Michael

Hoya Saxa of CT 2:12PM April 16, 2012

Dear Readers - the 2nd paragraph originally contained hyperlinks to reference sources. These source are linked below:

1) Congressional Budget Office: http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/92xx/doc9216/05-19-longtermbudget_letter-to-ryan.pdf

2) Joint Committee on Taxation: http://finance.senate.gov/newsroom/ranking/release/?id=a0fc8345-42ef-4d9c-a896-74b945240fb2

3) IRS Data: http://www.irs.gov/pub/irs-soi/09in01etr.xls

4) CBO source for $1.2 trillion deficit: http://cbo.gov/publication/43119

Jason Fichtner of VA 11:21AM April 16, 2012