Many years ago, in a galaxy far-far way we decided to go to progressive income tax. As the years passed so did the number exemptions and deductions pass as laws. Subsequently, today’s United States Federal Tax Code has become a major mess.
The Buffett Rule is the basic principle that no household making over $1 million annually should pay a smaller share of their income in taxes than middle-class families pay. Warren Buffett has famously stated that he pays a higher tax rate than his secretary, but as this report documents this situation is not uncommon. This situation is the result of decades of the tax system being tilted in favor of high-income households at the expense of the middle class. Not only is this unfair, it can also be economically inefficient by providing opportunities for tax planning and distorting decisions. The President has proposed the Buffett Rule as a basic rule of tax fairness that should be met in tax reform. To achieve this principle, the President has proposed that no millionaire pay less than 30 percent of their income in taxes. via The Buffett Rule – Business Insider.
Now our President and Democrats want to pass another law, on top of the current tax code, designed to make things fair. As if they’re the arbiters of what is fair. Instead of passing the Buffett Rule how about being assertive and actually reforming our mess of a tax code?