In the battle of words over President Barack Obama’s plan to raise taxes on the wealthy one Congressman took to the airwaves himself to offer up an argument against the proposals. Representative Tom Price said that even if the President got all the tax money he wanted it would only be enough to fund the government’s operations for eight days.
In an interview with MSNBC’s Andrea Mitchell Price said:
“The president’s plan to increase taxes on the upper two percent covers the spending by this federal government not for eight years, not for eight months, not for eight weeks but for eight days. Eight days only. It’s not a real solution. So, again, I’m puzzled by an administration that seems to be more interested in raising tax rates than in gaining economic vitality.”
the issue at hand is both the national debt and the federal deficit. The debt currently stand over $16 trillion dollars while the deficit has continuously been more than a trillion dollars a year.
Libertarian pundit John Stossel wrote:
“If the IRS grabbed 100 percent of income over $1 million, the take would be just $616 billion. That’s only a third of this year’s deficit. Our national debt would continue to explode.”
The issue of taxes on the wealthy has become more of a battle cry than a solution this year. During their campaign for the Presidency both Republican Mitt Romney and President Obama made taxes on the wealthy a serious issue. Romney seemed more concerned with federal spending than tax rates for the wealthy with Obama countering that the wealthy should pay their fair share.
Obama surrogate and billionaire investor Warren Buffett has come out with a plan that is gathering steam to impose a flat tax rate on all income for millionaires.
Buffett said:
“We need Congress, right now, to enact a minimum tax on high incomes. I would suggest 30 percent of taxable income between $1 million and $10 million, and 35 percent on amounts above that.”
Even Buffett himself concedes that the proposals being put forth by himself and Democrats would not significantly impact the federal debt or even barely close the gaping budget deficit. He is arguing for his proposal on a fairness matter and so that the rich could “boost the morale of the middle class”.
What do you think of Democratic proposals to raise taxes on the mega wealthy to help lower the national debt?