Tax Cuts, the Buffett Rule and the Election

By Richard Bernstein

I believe business owners tend to pay their “fair share” - the top 10% of income earners pay 71% of all federal income taxes paid. The United States, as of April 2012, has the highest corporate tax rate in the world. That means that together with personal and corporate taxes, our government is generating the highest tax base in the world. The Buffett Rule isn’t about money and rewards at all but about creating controversy and stirring up resentment between different levels of income earners. The numbers aren’t overwhelming; according to projections, the Buffett Rule would only raise $4.6 billion, which could easily be found by cutting wasteful spending. Additionally, since the Buffett rule doesn’t distinguish between classes of income, it could have a negative effect on investment. Capital gains taxes, for example, currently at 15%, would go up to 30% for high income earners who, for the most part, are capitalizing many of America’s new businesses that create new American jobs. [more...]