Senate Democrats Unveil Buffett Bill - "all millionaires would pay a minimum federal tax of 30 perce - Polidicks

[QUOTE]Washington (CNN) - Senate Democrats formally unveiled legislation Wednesday to ensure that all millionaires would pay a minimum federal tax of 30 percent. The legislation comes as the relatively low tax rate for some high earners –like investor Warren Buffett and GOP presidential candidate Mitt Romney– takes center stage in both the policy and political arenas in Washington. President Obama and congressional Democrats have made enactment of the "Buffett Rule," which they say would force high earners pay a higher tax rate than their secretaries, a central part of their re-election messages. They argue it's both a matter of fairness and the best way to reduce the staggering deficit. Buffett supports the Democrats' legislation. "These middle class families are really struggling to get by and then they find out that some people with really extremely high incomes are actually paying lower all-in federal tax rate than they are. That's, to them, just not common sense," said Sen. Sheldon Whitehouse, D-Rhode Island, and author of the bill. "Americans deserve a straight deal and right now they are not getting one from our tax system." A key reason Buffett and Romney pay a lower tax rates is because most of their income comes from investments. Taxes on capital gains from investments are capped at 15%. The legislation would apply to people earning more than $1 million a year, be it from salaries or investments or both. They could still take some deductions – such as for charitable giving – but after all is said and done, they must pay an effective tax rate of at least 30 percent of their income as federal taxes. Whitehouse says his legislation would raise billions for the government but there is no official estimate from the Congressional Budget Office about how much it would raise. Most Republican strongly oppose raising the capital gains tax because they argue taxing investments at a higher rate will stifle job creation and hurt the economy. Senate Democratic leaders have not decided when they will push for a vote on the legislation, which is called the "Paying a Fair Share Act of 2012." They want to consider first a handful of bills they consider to be job creation measures, including a highway funding bill, the FAA funding bill, and postal reform bill, according to aides. [/QUOTE] Source: [url]http://politicalticker.blogs.cnn.com/2012/02/01/senate-democrats-unveil-buffett-bill/?hpt=hp_bn3[/url]

Good. I was looking at the tax brackets and they should be paying 35% technically.

Billionaires should have even higher taxes.

[QUOTE=ewitwins;34515164]Good. I was looking at the tax brackets and they should be paying 35% technically.[/QUOTE] Thanks to classification of 'carried interest' as a capital gain, they pay 15% most of the time. That inequity is horrid.

It'll never pass the repub-controlled house, but its a nice idea.

[QUOTE=zombini;34515191]Billionaires should have even higher taxes.[/QUOTE] Some of them do make huge donations though.

I agree with this whole heartedly, but as someone who is convinced without a doubt he is going to win the lottery, I don't think the government should take any of the lottery winnings. That's just bullshit.

[QUOTE=Gekkosan;34515420]Some of them do make huge donations though.[/QUOTE] What's the ration of those who donate to those who do not?

[QUOTE=ewitwins;34515164]Good. I was looking at the tax brackets and they should be paying 35% technically.[/QUOTE] Since the income in the lower brackets is taxed below 35%, a millionaire pays about 30% tax (if capital gains tax were like current income tax).

It will only be a matter of time before more loopholes are found...

[QUOTE=Gekkosan;34515420]Some of them do make huge donations though.[/QUOTE] Yeah and you can write off the money you donate

I don't understand exactly what this bill entails. The article keeps referring to income taxes, yet income taxes for that bracket are already around 38%. Are they making a separate bracket for capital gains?

[QUOTE=Ven Kaeo;34515439]I agree with this whole heartedly, but as someone who is convinced without a doubt he is going to win the lottery, I don't think the government should take any of the lottery winnings. That's just bullshit.[/QUOTE] I would have thought lottery winnings would be mostly exempt as they aren't technically your income, just a prize. But then again, basing taxes purely off income leads to loopholes with people like Jobs' who technically had low incomes, but high earnings from investments in his company.

[QUOTE=SomeRandomGuy16;34516435]I don't understand exactly what this bill entails. The article keeps referring to income taxes, yet income taxes for that bracket are already around 38%. Are they making a separate bracket for capital gains?[/QUOTE] 38%? It's 35% for the very highest bracket, and this bill is just meant to ensure that no matter what, anyone making more than $1,000,000 a year is paying at least a 30% effective tax rate. Not 15%, not 20%, but 30%.

thinking that a bill to raise taxes on the rich is gonna pass congress is like thinking that a bill to raise taxes on the rich is gonna pass congress

[QUOTE=skynrdfan3;34517119]thinking that a bill to raise taxes on the rich is gonna pass congress is like thinking that a bill to raise taxes on the rich is gonna pass congress[/QUOTE] Sadly I agree.

[QUOTE=Megafanx13;34516996]38%? It's 35% for the very highest bracket, and this bill is just meant to ensure that no matter what, anyone making more than $1,000,000 a year is paying at least a 30% effective tax rate. Not 15%, not 20%, but 30%.[/QUOTE] So 30% on your primary source of income if you are a millionaire? I'm ok with this, as long as economic advisors rule that it won't negatively affect investment

[QUOTE=SomeRandomGuy16;34517220]So 30% on your primary source of income if you are a millionaire? I'm ok with this, as long as economic advisors rule that it won't negatively affect investment[/QUOTE] It wont

[QUOTE=person11;34517353]It wont[/QUOTE] I'm not so sure about that. [url]http://iret.org/pub/CapitalGains-1.pdf[/url]

Isn't income tax 40%? I'm confused.

We need to provide extra, larger brackets for those making millions of dollars. For, you see, the income tax bracket of 35% (which is apparently being bypassed via a loophole of some sort) begins at around $350k a year. Now tell me, why should someone who makes $350k a year pay the same percent tax rate as someone who makes $14 million a year? It's simply absurd. [editline]2nd February 2012[/editline] We could also provide a sort of tax break option available for those who donate a certain percentage of their income to charities and foundations that are outside of their control/influence. So, for example, Bill Clinton could donate to the Red Cross, however Bill Clinton could not donate to the Bill Clinton Foundation and then reroute the money to himself while getting a tax break.

[QUOTE=joes33431;34518046]...For, you see, the income tax bracket of 35% (which is apparently being bypassed via a loophole of some sort)...[/QUOTE] It's because the money they are making isn't through a job. It isn't income. You can't pay income tax if you don't have an income. They are making all of their money through investments, stocks, bank account interest etc. Essentially, they are making money because they have money. It must be nice to have an exorbitant amount of money, not have a job, STILL make more money and almost pay no tax.

[QUOTE=Emperor Scorpious II;34515447]What's the ration of those who donate to those who do not?[/QUOTE] Hell if I knew.

[QUOTE=Zeke129;34516379]Yeah and you can write off the money you donate[/QUOTE] I don't think Bill Gates has donated over half his wealth just for a tax write off, bro. [editline]2nd February 2012[/editline] [QUOTE=hexpunK;34516683]I would have thought lottery winnings would be mostly exempt as they aren't technically your income, just a prize. But then again, basing taxes purely off income leads to loopholes with people like Jobs' who technically had low incomes, but high earnings from investments in his company.[/QUOTE] Federal Government takes a minimum of 25% of your lottery winnings in tax as soon as you claim it. Fucking greedy cunts.

[QUOTE=joes33431;34518046] Now tell me, why should someone who makes $350k a year pay the same percent tax rate as someone who makes $14 million a year?[/QUOTE] because that would actually be fair?

[QUOTE=Ven Kaeo;34519688]I don't think Bill Gates has donated over half his wealth just for a tax write off, bro. [editline]2nd February 2012[/editline] Federal Government takes a minimum of 25% of your lottery winnings in tax as soon as you claim it. Fucking greedy cunts.[/QUOTE] Yeah! Greedy bastards putting it towards shit like "Education". Fucking cunts.

No, don't raise rich peoples taxes! They'll starve! It seems like it makes fucking sense to tax the rich people more, but it just proves that money controls the government.

[QUOTE=Nikota;34519852]Yeah! Greedy bastards putting it towards shit like "Education". Fucking cunts.[/QUOTE] Right, if the money is going towards education, then i'm an Oscar Mayer Weiner.

It will not pass, but it will look good for the election

I was thinking - what would be wrong with the US imposing taxes similar to the way Sweden does it, like 33% tax or something but they also get University completely paid for (and even paid TO go) and they get all of this government help to ensure the safety of the people. Is our country too large to do this?