Government to get just $31 Billion from Buffet tax
A bill has been designed to implement the Buffet rule of President Obama which says the wealthy people of America should be taxed more so that the huge budget deficit can be adjusted over the next few years. But after looking into the budget details of the Buffet rule, it can be seen that the tax on the wealthy people would bring in $31 billion over the next 11 years and the budgetary deficit at that time is expected to reach around $7 trillion.
The amount is also very less when compared to the hundreds of billions that it would cost to prepare the alternative minimum tax, which Obama wants to replace with the Buffet rule tax. The initial aim of the alternative minimum tax was to ensure that taxes are properly paid by wealthy Americans in spite of breaks and other deductions. But after certain period of time, it was found that it has started affecting the upper middle class families. Every year, the US Congress always tries to minimize its impact.
The plan was named after the billionaire investor Warren Buffet, who feels that the taxes imposed on the richer America is too low. President Obama liked the proposals very much and has proposed that people who are earning at least $1 million annually can pay at least 30% of their income tax. Further details have not been disclosed yet. Few people are also commenting that the concept will now stay at the proposal stage and may not be implemented now, especially when the elections are due in November 2012.
Obama will try to project to the voters that they are the party which is trying to champion the cause of economic fairness. Republicans are criticizing the move, saying that they are trying to score political points in-spite of the fact that it will have little budgetary impact.
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