New Study At Odds with Buffet’s Views
In direct contradiction to calls from such stellar financial advisers, such as Warren Buffet, a new study shows that heavily taxing those US citizens earning between $1 million and $10 million will not make the county’s debt crisis magically go away.According to the non-partisan Tax Foundation’s David Logan:
“Even taking every last penny from every individual making more than $10 million per year would only reduce the nation’s deficit by 12 percent and the debt by 2 percent.”
No Magic Wand
Logan adds that “There’s simply not enough wealth in the community of the rich to erase this country’s problems by waving some magic tax wand.”Barack Obama, with the support of financial investment giant Warren Buffet have nevertheless taken the stand that the wealthy of the nation should bare more of the tax burden to help ease the country’s economic woes.
Buffet Calls for End to Coddling
Buffet stated on August 15th in an op-ed piece published in the New York Times that it was time to end “coddling” of the wealthy. He called on the Congress to increase taxes on citizens earning $1 million and up.
“But for those making more than $1 million there were 236,883 such households in 2009 I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains. And for those who make $10 million or more there were 8,274 in 2009 I would suggest an additional increase in rate,” Buffett said.
“My friends and I have been coddled long enough by a billionaire-friendly Congress,” explained Buffett.
Higher Taxes Not the Answer
But David Logan, author of the Tax Foundation’s study, begs to differ. Logan states that even if Congress were to set a 50 percent tax rate for the nation’s millionaires, including sealing off loopholes and eliminating deductions, the deficit would only drop by 8 percent and the debt by 1 percent.