Buffett Rule

If the rich have a responsibility to the U.S. economy’s fiscal debt, they should pay it. They should not be given any slack in that regard. But if they do not have this responsibility, they cannot be penalized with an increased tax burden solely because they are millionaires. We must be fair. Of course, we should first determine the extent to which powerful groups are involved in the budget deficits that constitute one of the major headaches for investors today. Greece, Spain and Portugal are just the tip of the iceberg of debt malaise that is certainly much more dramatic. The outlet that Obama has found to address the budget crisis in the United States is the establishment of the “Buffett Rule,” a rule that consists of an 18-30 percent tax increase for millionaires. The tycoon Warren Buffett considered it unfair that his secretary should pay her taxes at a higher rate than he. Overall, U.S. wage incomes are taxed at a rate higher than the rate that is applied to capital gains. The proposed rule is debatable because we must also recognize that those rich people have not only provided the initiatives, but the capital to create jobs and wealth, as well. What will the consequences be if the rich, plagued by tax pressures, begin to abandon projects? In his capacity as the president of the leading world power, Obama’s initiative acquires a very particular dimension since, at any time, it can become a reference for countries where fiscal deficits have led to corruption and waste. The rich who have benefitted from the state should fairly pay the dues that they owe. But the millionaire status alone, particularly if earned through work, cannot be seen as a kind of cardinal sin.