US economy: New Obama plan to tax wealthiest

 
President Barack Obama - 16 September 2011 President Barack Obama faces an election year with unemployment stubbornly high

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US President Barack Obama is planning a higher minimum tax rate on the richest Americans to ensure they are taxed at the same rate as the less wealthy.

White House officials said Mr Obama would provide details of his proposal on Monday when he reveals his long-term plan to reduce the budget deficit.

Reports say the proposal is to be called the Buffett Rule, after the billionaire investor Warren Buffett.

Mr Buffett says loopholes mean the richest pay relatively less tax.

This is because earnings from investments are taxed at lower rates than wages.

The proposed new tax would affect Americans who earn more than $1m a year.

The proposal is likely to meet a strong challenge in Congress, where Republicans have said they oppose any tax increases.

The US economy has been growing only slowly while the unemployment rate remains stubbornly high, above 9%. Facing an election next year, Mr Obama has had a battle in Congress over how to reduce the ballooning deficit while the economy remains stagnant.

A Congressional "supercommittee" of six Republicans and six Democrats has been charged with finding steep reductions in the deficit by late November, when automatic cuts come into force.

 

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  • rate this
    +2

    Comment number 199.

    @180

    You are absolutely correct this will make very little difference and Obama knows that.

    Like his jobs act, this is nothing more than political theatre. Obama like just about every other professional politician (Democrat or Republican) is only interested in ensuring that he gets to keep his job and subsequently his nose firmly immersed in the public trough!

  • rate this
    -1

    Comment number 198.

    196.Monkey Magic
    8 Minutes ago
    -----------
    Fraid you pinched that bit dear boy. Remember this

    @177. Emma idiot ? Go live in Cuba if you don't agree with me.

    You really must try harder.
    --------------
    By the way you say you are happy with the family and career you have built up.
    Just one question..............Why do you complain so much

  • rate this
    -2

    Comment number 197.

    @monkeymagic. the US has so much debt and the super rich have so much wealth. Is it so wrong to ask them to pay their fair share to a economy that made them very rich in the first place. lets have some proper debate from you instead of trolling comments designed to provoke a reaction.

  • rate this
    0

    Comment number 196.

    @ 190. benbowlane Just been reading some more of your comments. You do have a lot to say. Anything constructive I wonder.
    The rich generate wealth and should be allowed to avoid tax. The tabloids are right. If you annoy the wealthy they might leave and then where would we be? Go live in Cuba if you don't agree with me.
    ---
    And your Comments are constructive?

  • rate this
    +1

    Comment number 195.

    185. Mike
    35 MINUTES AGO
    I have access to the same tax avoidance techniques as Buffet et al. All I have to do is set up an off shore company, stop investing in the US, and put all income into the off shore.

    Then your citizenship should be revoked. Wasn't there an idea at one time, something like "no representation without taxation"?

  • rate this
    0

    Comment number 194.

    191.Monkey Magic
    5 Minutes ago
    ---------Oh do get real dear boy.
    I'm sure there are several little communist states left in the world where you can go and wear your sackcloth and ashes and eat turnips.

  • rate this
    -1

    Comment number 193.

    I really don't get why these super disgustingly rich billionaires and millionaires object to paying the same rate of tax as say somebeody who earns less 50000 dollars. even if they payed the going rate of tax with no loop holes they would still be filthy rich beyond what 99% of the population could only dream of. Whats the point of hoarding it. put it to good use and get the USA working again.

  • rate this
    +1

    Comment number 192.

    Although a step in the right direction, it's only token politics as the rich will always find ways to avoid taxes and amass their selfish fortunes, and governments are made up of such people who allow these loopholes to exist.
    It is the duty of politicians go into politics to make greater good for the majority of their citizens but end up doing the reverse, that's why everythings now going bad.

  • rate this
    0

    Comment number 191.

    I don't have a fantastic living, just better than average because I put my brains and bottle to good use

    So why are you complaining about a plan to tax the wealthiest, or is that where you strive to be! Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction. ps I am very happy with my career and family that I have built up.

  • rate this
    -1

    Comment number 190.

    182.Monkey Magic
    --------------------
    Just been reading some more of your comments. You do have a lot to say. Anything constructive I wonder.

    Still at least you got the first part of your handle right.

  • rate this
    +1

    Comment number 189.

    64. Udayan Mallik
    5 HOURS AGO
    This president seems to live in a fantasy world.

    Glass houses and all that. The US simply cannot go on, as a nation, racking up sovereign debt. That means taxing people - or not having armed forces etc. It is simply insanity that the wealthiest pay proportionately less than the poorest.

  • Comment number 188.

    All this user's posts have been removed.Why?

  • rate this
    +3

    Comment number 187.

    17.i
    3 Hours ago
    -----.
    133.Monkey Magic
    2 Hours ago
    -----
    I don't have a fantastic living, just better than average because I put my brains and bottle to good use
    You two demonstrate all that is wrong with this country.
    Jealousy, jealousy, jealousy. You havent got the guts to get off your butts and compete and try and build something, so you hate the people who do.....Total losers.

  • rate this
    0

    Comment number 186.

    The Obama proposal seems more than fair to me.

  • rate this
    +2

    Comment number 185.

    I have access to the same tax avoidance techniques as Buffet et al. All I have to do is set up an off shore company, stop investing in the US, and put all income into the off shore. Then i draw it down as needed for expenses in the US and pay taxes only on what I use, not all the income. Viola! Now I am under the $1mm threshold.

    Try again Obama!

  • rate this
    0

    Comment number 184.

    Is post 64 (Udayan Mallik) "trolling" or "flaming"? Touch and go, I'd say. Just don't tell me s/he's serious!

  • rate this
    +2

    Comment number 183.

    Although it's a bit late, it's about time the Politicians worked for the greater benefit of the majority rather than just the minority and started taking more off those that over indulge and take more of their fair share.
    Greed has and corruption has been allowed to prevale and actively encouraged for the benefit of the minority. He'll be lucky if he get this through as the rich want it all.

  • rate this
    0

    Comment number 182.

    @177. Emma idiot The rich generate wealth and should be allowed to avoid tax. The tabloids are right. If you annoy the wealthy they might leave and then where would we be? Go live in Cuba if don't agree with me.

    PS if your willing to pay me the fare I will go and live in Cuba may aswell feel the pain in the sunshine.

  • rate this
    +2

    Comment number 181.

    177. Emma idiot The rich generate wealth and should be allowed to avoid tax. The tabloids are right. If you annoy the wealthy they might leave and then where would we be? Go live in Cuba if don't agree with me.
    Annoy the wealthy they might leave that's a bit arrogant, well I say let them leave, don't you the think the rest of us are annoyed at the cut's etc, the thing is we can't get up and leave.

  • rate this
    +1

    Comment number 180.

    I have to give Obama credit for at least thinking about our economy.But i don't see how raising tax's on such a small portion of people is going to make any kind of difference for the working class.

 

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