Obama Proposes Taxes to Help Reduce Budget

New Proposal Sent to Budget Super-Committee to Help Lower National Debt

by Michael Reubelt on September 19, 2011

On September 19^th, President Barack Obama promised to veto any bill presented to him which does not include stipulations to make wealthy Americans “pay their fair share.” As the debt super-committee created by Congress as a stop-gap solution to the summer’s debt debate convenes, Obama has made strong pitches in pushing through his own debt plan. Republicans have roundly criticized the White House’s proposal.

While many of Obama’s tax plans are similar to those which failed to be passed during the previous debt debates, billionaire Warren Buffet may be responsible for the most significant addition this time around. After Buffet publicly called for higher taxes on the rich, the White House created the “Buffet Rule.” This stipulation works on the principle that no household earning more than $1 million annually should receive a lower tax rate than a middle-income one. Buffet has been quoted as saying that he pays a lower tax rate than his secretary.

Republicans lambasted the plan as “class warfare.” “We don’t need a system that seeks to prey on people’s fear, envy and anxiety,” says House Budget Committee Chairman Paul D. Ryan, “We need a system that creates jobs and innovation and removes these barriers for entrepreneurs to go out and rehire people.”

Obama has denied the accusation of class warfare. “It comes down to this: We have to prioritize,” said Obama. “Both parties agree that we need to reduce the deficit by the same amount, by $4 trillion. … Either we ask the wealthiest Americans to pay their fair share in taxes or we’re going to have to ask seniors to pay more for Medicare. We can’t afford to do both.”

The White House has stated that in 2009, 22,000 Americans who made over $1 million paid less than 15 percent of it in their taxes. The Internal Revenue Service states that 235,000 returns were filed in 2009 in which the annual reported income was over $1 million.

Democrats have supported the majority of Obama’s plan. Illinois Senator Richard J. Durbin, in an appearance on CNN, said, “I think his team put together a positive, good plan. What’s the Republican alternative? Do nothing and protect the millionaires.”

It remains to be seen how the bipartisan committee, which must issue its decisions by November 23^rd, will react to the Obama plan. The president technically has no power over the committee’s decision, but it is likely to be the most hotly contested part of the debt debates.

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