Posts Tagged Buffett Rule
Senate Majority Leader Harry Reid (D-Nev.) announced today that he and his Democratic colleagues in the Senate would put forth a new proposal to pay for President Obama’s American Jobs Act bill. Their latest proposal, which will be released in its entirety by week’s end, places a greater tax burden on people whose income is more than $1 million a year. The version of the proposal outlined by Leader Reid today would have these wealthy individuals forfeit all of their assets and income and join the Occupy Wall Street protesters for a period of at least six months.
“We think that this accomplishes two of our main goals,” said Leader Reid. “First, it provides a mechanism for these millionaires to finally pay their fair share and second, it gives them the opportunity to live on the street amongst those individuals in our society who are suffering as a direct result of their financial misdeeds. We see this as fiscally prudent. And, it provides an element of poetic justice.”
Top Senate aides said that, under the proposal, millionaires would be required to actually live on Wall Street, make signs, and participate in the daily demonstrations conducted by the Occupy Wall Street protestors for a minimum of six months.
Aides went on to say that this was just one of several proposals that Democrats were pursuing to pay for the president’s proposed bill. By looking for alternatives, the Democrats are clearly signalling that they do not have the support of their caucus to pass the bill as it is currently written.
President Obama has asked the congressional super committee to identify another $ half trillion in savings to pay for the jobs measure. This is beyond the $1.2 trillion in spending reductions the committee is chartered with finding in support of the deficit reduction plan.
To pay for the proposal, the White House has recommended limiting itemized deductions for individuals making more than $200,000 a year along with closing certain tax loop-holes and implementing the “Buffett Rule” for an increase in capital gains tax rates.
Senate Majority Leader Harry Reid will introduce his “millionaire’s plan” as an alternative aimed at addressing concerns raised by his caucus with the president’s proposal.
“We believe our “millionaire’s plan” offers financial benefits along with a generous helping of American justice. We think this will be popular with the American people and we believe that these guys will fit right in down there at Occupy Wall Street.”
Dreadmonger will provide updates to the story as they become available.
- Protest time: Support the Occupy Wall Street movement and a new American Spring (thehill.com)
- The most powerful Occupy Wall Street twitpics (cbsnews.com)
- Kristof: ‘Occupy Wall Street’ Needs Clear Goals (littlegreenfootballs.com)
OMAHA (Dreadmonger) – Berkshire Hathaway issued a press release tonight announcing that Warren Buffett was personally gifting his secretary to the tune of $1 billion in order to reduce her tax rate to the same level that the billionaire investor enjoys.
Missy Sprindle, Mr. Buffet’s administrative assistant at Berkshire Hathaway for the past 18 years, met with reporters from Dreadmonger’s Omaha Bureau in an exclusive interview this evening.
“I’m just so excited! Mr. B. is just too kind. With all this talk about how much I pay in taxes, I just didn’t think he would go and do this. He’s such an old sweetie.”
Mr. Buffett has expressed concern in recent months about the disparity between his tax rate and that of his secretary. According to Mr. Buffett, he is taxed at about 17% on his $46 million in income “without trying to avoid paying higher taxes” while his secretary is taxed at a rate of 32%.
The gift to Ms. Sprindle was in the form of dividend producing Berkshire Hathaway bonds. The income from the $1 billion in gift bonds will be treated as capital gains and, when combined with Ms. Sprindle’s $60,000 annual salary, will lower her effective tax rate to a projected 17.3%, rivaling that of Mr. Buffett.
Dreadmonger reporters asked Ms. Sprindle if she was aware of the “Buffet Rule” that President Obama was recommending to rectify the tax disparity between wealthy and middle class tax payers.
“Why no,” said Ms. Sprindle, “I really don’t pay any attention to politics, I’m afraid. What’s that all about?”
Dreadmonger reporters explained that the new rule would effectively raise her tax rate back to the 32% “fair share” level that the middle class pays.
“Why, that’s the stupidest, most idiotic thing I ever heard of,” said Ms. Sprindle. “I guess I’ll have to invest in a good tax attorney.”
“After all,” said Ms. Sprindle, “I can afford it.”
Dreadmonger will provide updates to this story as they become available.
- Paul Ryan Accuses Obama of ‘Class Warfare’ Over Millionaire Tax (crooksandliars.com)
- President Obama calls for tax increase on wealthy to reduce deficit (charlotte.news14.com)
- Obama and the Buffett Tax (dailyfinance.com)