Saturday, April 14, 2012

Buffett Rule Bill Leaves Some Millionaires Untouched

The NEA sent me an email with the video below included. And here's part of the pitch for higher taxes:
Also on Tax Day, the Senate will vote on the Paying a Fair Share Act (S. 2230). The bill, introduced by Senator Whitehouse (D-RI) would implement the “Buffet Rule” to ensure that millionaires and billionaires pay their fair share in taxes. In doing so, it would help choose the right vision for America – the one in which every American contributes to economic recovery and all have the hope and the help they need to succeed.

I literally hate the union's political activities. I don't hate unions, since I think collective bargaining has a place, but unions are the "schoolhouses of socialism," and the NEA proves it again and again.

And this push for the Buffet Rule is just another tax-raising scam by the left. See IBD, "Bill to Implement Buffet Rule on Millionaires Shelters Tax-Exempt Bonds":
President Obama brought the Buffett Rule front and center in his re-election campaign this week, but legislation to implement it has a major exemption that would reduce likely tax revenue and discourage productive investment.

If passed by Congress — highly unlikely — the Buffett Rule would require everyone with an income of $1 million or more to pay a 30% minimum federal income tax. It's named after billionaire Warren Buffett, who famously said his secretary paid taxes at a higher rate than he did.

Obama on Tuesday renewed his call for the rule. Hours earlier, the White House issued a report arguing that rich people weren't paying enough taxes.

But a Buffett Rule bill by Sen. Sheldon Whitehouse, D-R.I., has a glaring omission. It exempts a favorite tax shelter of the wealthy, municipal bonds.

The legislation determines whether a taxpayer has a million-dollar income by looking at adjusted gross income. That excludes tax-exempt interest payments.

"That does undermine the logic put forward for the rule," said Alan Viard, senior fellow at the American Enterprise Institute. "I'm surprised more people haven't picked up on that. Municipal bonds are held disproportionately by high-income taxpayers, and they get the highest tax break."

Municipal bonds are issued by state and local governments to finance capital projects like schools, roads and high-speed trains. Because they are tax exempt, interest rates — and financing costs for local governments — are lower.
More at the link.