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

Related Stories

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.

 

More on This Story

Related Stories

Comments

This entry is now closed for comments

Jump to comments pagination
 
  • rate this
    +1

    Comment number 219.

    The Republicans will try to stop everything Obama will propose. The only reason they are against any tax increases is because they know that the rich pay less money in taxes than any other class, most of them don't pay any taxes and the Republicans would like to keep it that way. Not to mention that elections aren't too far away so they would like to say that he didn't do anything for the country.

  • rate this
    +1

    Comment number 218.

    http://www.nytimes.com/2011/09/16/opinion/bipartisanship-of-the-wrong-kind.html?scp=1&sq=wrong%20kind%20of%20bipartisanship&st=cse

    According to NY Times many Dems as well as Repubs oppose his current proposal. The truth is no new taxes need to be raised, just a closure of wealth draining loopholes and incentivising job creation. Don't forget the US also has State Taxes which vary between States

  • rate this
    +2

    Comment number 217.

    115.
    Dave A
    4 Hours ago

    Unfortunately we are agreed, I got my first job opportunity in the Public Sector after University and I know many who do a great job, however it is too easy for people who have never been in each others shoes to say to the other what they should and should not do (especially with their own money)

  • rate this
    0

    Comment number 216.

    Nice try,but the Reps&Teaparty will find ways to block&what is worse,to convince evan people wiss less income that this wrong.
    It would not help much anyway,but it would not harm the Rich to pay some more Tax

  • rate this
    0

    Comment number 215.

    I t really does surprise me that although many on here rightly condemn GE for avoiding taxes in the US nobody is questioning that Obama appointed GE CEO Jeff Immelt to head his "Jobs Council". As well as being the architect of massive tax avoidance, he has also moved 10,000 US jobs to China and apparently even more are to go.

    Arrogance, inexperience, ineptitude or plain pay back, you decide!?

  • rate this
    +3

    Comment number 214.

    The US economic model as proposed by the American rightwing would take the US back to the 19th century of worker exploitation and oligarch ownership of the government where big money buys legislation and influence. The unpatriotic ultrarich no longer pay their fair share and the citizenry is exempt from universal military conscription as is their duty and contribution in a democracy. Bad times.

  • rate this
    +2

    Comment number 213.

    @ 197.julesverne123 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
    ---
    I totally agree with you I think you have misunderstood something I am all for the super rich to pay a bit extra in times of crisis. what did I say that gave a different opinion

  • rate this
    0

    Comment number 212.

    This is not about "raising taxes" - how many of you make over $1 million per year? In 2006, about 353,000 filers made over a $1million. Are you against the rich putting back some of our money they gave to wall street and other friends just by paying the same taxes we do? When one of "us" worker bees, which is over 90% of us says "give the rich a break" -who have they been listening to?

  • rate this
    0

    Comment number 211.

    There is also the Robin Hood tax that Obama and the rest of the Western World could implement but fear of upsetting bankers seems to be a hurdle. In addition he could try taxing complaints which would also improve the quality of goods and services as explainted in the website ataxoncomplaints.co.uk

  • rate this
    +5

    Comment number 210.

    I have a small business. A few thousand dollars tax cut won't make me hire another employee if nobody is going to buy our products. I would rather see other people have more money to spend, to buy our products so I can be more confident to produce more or hire more.
    The rich won't use their tax cut to buy anything to help the economy run. They have everything. They just put it in bank or in stock

  • rate this
    0

    Comment number 209.

    198. benbowlane 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
    --
    I am replying to a flippant comment you made that the rich should be allowed to avoid tax who happens to generate growth, just think at what you said there and you ask me why I complain so much.
    maybe u come down from your perch and get with the real world

  • rate this
    -1

    Comment number 208.

    #203. benbowlane
    13 MINUTES AGO
    200.andyparsonsga
    Just now
    ------------------
    Could not have put it better myself
    ----------------
    Probably the only point people will agree with you on.

  • rate this
    0

    Comment number 207.

    194. benbowlane -Oh do get real dear boy.
    I'm sure there are several little communist states left in the world where you can go.
    --
    Must of hit a nerve, so your marxist if you feel the wealthy should be taxed more, this just shows how naive your comments are, is there any Inclination we might just disagree with you. when you can't think of anything throw a marxist comment in that will do!!

  • rate this
    +3

    Comment number 206.

    There is a lot of surplus on this bill which will have no direct effect on improving the economy but will reward special intrests like Solyndra.

    The Repblicans are willing to adopt part of Obama's plans but he is unwilling to compromise.

    And for a man who has shown how little he knows on the economy or anything else that is tremendous Huburis.

  • rate this
    -1

    Comment number 205.

    #200
    US needs more tax revenue - the big boys have more expertise in evasion/avoidance as do high net worth individuals.
    The current system is crazy and effectively subsidises tax cuts for those who should already be paying more.....

  • Comment number 204.

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

  • rate this
    +1

    Comment number 203.

    200.andyparsonsga
    Just now
    ------------------
    Could not have put it better myself. However some people on this site confuse all small businessmen with Warren Buffett.
    --------------------------
    As I said earlier
    Sounds to me as if Obama can hear the election drums beginning to beat.

  • rate this
    0

    Comment number 202.

    If only Obama could realise that allowing drilling back into the gulf could potentially increase employment by up to a million people and reduce the imported oil thus reducing the gas price at the pumps. He needs to get off this personal vendetta against the big bad oil companies and realise how good they are for the economy. Tax the rich that works to keep the masses happy !

  • Comment number 201.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • rate this
    +2

    Comment number 200.

    So many on here seem to think that everyone who falls within Obama's "rich” demographic gained their wealth by inheriting it, ripping others off, or exporting jobs to boost profits. 76% of businesses in the US are defined as "small" in that they employ less than 200 people. They generate the vast majority of jobs and contribute the largest proportion of corporate tax revenues.

    Continued

 

Page 4 of 14

 

More US & Canada stories

RSS

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.