Tuesday, March 20, 2012

Minimum Tax On The Rich, A Buffett Rule, Has Very little Impact On The Budget Deficit

From Bloomberg, "Buffett Rule Tax Bill Would Raise $31 Billion Over 10 Years" by Richard Rubin:
Implementing a "Buffett rule" to require a minimum 30 percent tax rate for the highest U.S. earners would raise $31 billion over the next decade, according to a government estimate.

The estimate for the proposal backed by President Barack Obama comes from the Joint Committee on Taxation, the scorekeepers for Congress.

...Senator Orrin Hatch of Utah, the top Republican on the Finance Committee, said in a statement that noted the proposal would have little effect on reducing the federal budget deficit. "It was designed for no other reason than politics. There is no economic rationale for it."
The Congressional Budget Office estimates that Obama’s 2013 budget plan would expand the deficit by $6.4 trillion over the next decade. The bill would reduce that by less than 0.5 percent.

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