Obama’s “Buffett Rule” Won’t Even Dent The Deficit
So says this article from The Atlantic, hardly a bastion of supply-siders:
This week, President Obama announced a new way for the government to make more money: put a floor on the tax rates that millionaires face. He coined the idea the “Buffett Rule,” after billionaire investor Warren Buffett, who recently complained that he didn’t pay enough taxes. Even though incomes are taxed progressively, so those making more money are supposed to pay more, capital gains — like income from stock gains — can escape those marginal rates. That’s one way in which wealthier Americans enjoy lower tax rates than marginal rates would imply.
They even include a handy chart:
See the gap between the top of the blue bars and the red line at the top? That’s how much of the deficit would remain after taxing millionaires at the given tax rates. Even at 100% taxation, it’s nowhere near enough to close the deficit gap.
Will this matter to Obama and the rest of the Class Warriors? Nope. But it’s worth posting here so as to be able to refute the lefties’ arguments.