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View Diary: Warren Buffett calls for A Minimum Tax for the Wealthy (107 comments)

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  •  I'd be more impressed if he worked for (0+ / 0-)

    comprehensive tax reform.  A simplified system of just two or three rates with virtually no deductions.  The 30% is fine with no deductions, but it's not going to bring in heaps of cash to cover the deficit.  Fairness involves a fair system for everyone -- including simplification for the "not rich."

    •  that's a big tax increase for the bottom 50% (1+ / 0-)
      Recommended by:
      PatriciaVa

      who are least able to pay for it. It's a terrible idea.

      Instead, just have a fixed 40% rate for all income over $250k, earned or not (no special cap gains or dividend rates). No deductions.

      •  I'm not sure which of us is misunderstanding (2+ / 0-)
        Recommended by:
        teacherken, Roger Fox

        Buffett's recommendation, but the way I read this, the 30% isn't on all taxpayers but is an added tax after the initial bite that would be levied on the income over $1M, and an additional 35% on income over $10M.  I don't read him as recommending anything at all related to those with incomes under $250K (or his preferred $500K).

        I have no idea what kind of tax revenue his plan would generate, but surely it's a whole lot more than we're getting from the wealthy right now.

        The good we secure for ourselves is precarious and uncertain, is floating in mid-air, until it is secured for all of us and incorporated into our common life. Jane Addams

        by Alice Olson on Mon Nov 26, 2012 at 09:30:27 AM PST

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        •  oh, I see (0+ / 0-)

          That's something like a 70% federal tax rate.

          As a negotiating position that's fine, but it's no longer a genuine proposal.

          •  why not? (1+ / 0-)
            Recommended by:
            Roger Fox

            we have had higher marginal tax rates in the past and people did quite well and so did the economy

            "We didn't set out to save the world; we set out to wonder how other people are doing and to reflect on how our actions affect other people's hearts." - Pema Chodron

            by teacherken on Mon Nov 26, 2012 at 10:28:01 AM PST

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          •  But its an actual solution (0+ / 0-)

            that would work, Repeal the Reagan tax cuts and the 1986 Tax Reform Act, would put the economy on a far more stable foundation.

            39.6% top rate aint going to do squat in that regard. The extra revenue is nice, but the inherent instabilities still exist. Domestic investment would still suck and income disparity would still increase.

            FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

            by Roger Fox on Mon Nov 26, 2012 at 10:50:51 AM PST

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          •  Maybe, Ferg, that you aren't (0+ / 0-)

            understanding the idea of marginal rates.  Buffett's proposal seems to be

            35% on AGI (adjusted gross income) up to $500K
            39.6% on AGI from $500K to $1M
            69.6% on the AGI over $1M but less than $10M
            74.6% on the AGI over $10M.

            So, you are right that the rate on income over $1M (after all the adjustments and deductions which Buffett doesn't appear to want to disturb) would be taxed at or over 70% -- but the first million would have a maximum tax rate of 39.6%.  And, surely those with more than a million dollars income can find accountants to minimize the AGI of the big bucks over a million.

            The good we secure for ourselves is precarious and uncertain, is floating in mid-air, until it is secured for all of us and incorporated into our common life. Jane Addams

            by Alice Olson on Mon Nov 26, 2012 at 02:24:42 PM PST

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        •  See brackets pre 1960 here (0+ / 0-)

          http://taxfoundation.org/...

          ANd see what the adjusted dollars rates are today.

          FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

          by Roger Fox on Mon Nov 26, 2012 at 10:52:42 AM PST

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    •  Get out, no really.... GTFO (0+ / 0-)

      What you propose is so phenomenally unstable. We would see recessions that are longer and deeper, and income disparity would increase even more.

      Take a history lesson here
      http://taxfoundation.org/...

      Then study this
      http://en.wikipedia.org/...

      I would make the bottom 3 brackets about like this

      0-30k-8%
      31-49k-9%
      50k-10%

      Then add 6 more brackets

      2mill-40%
      4mill-41%
      6mil-42%
      12mill-43%
      24mil-44%
      48mill-45%

      Fuck tax fairness, we need a stable system that doesnt collapse every 5-10 years.

      FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

      by Roger Fox on Mon Nov 26, 2012 at 11:01:04 AM PST

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    •  No deductions for domestic investment? WTF ? (0+ / 0-)

      FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

      by Roger Fox on Mon Nov 26, 2012 at 11:01:57 AM PST

      [ Parent ]

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