Senate Majority Leader Harry Reid (D-NV) has scheduled a vote on the “Buffet Rule” legislation for April 16, 2012, the day before tax fillings for 2012 are due.
The ‘Buffett Rule” legislation that was proposed by Senator Sheldon Whitehouse (D-RI), would require millionaires to pay at least a 30 percent rate.
The disparity in tax requirements is enormous, a good example to highlight this disparity comes from Mitt Romney, who released his tax forms for 2010 that showed he only paid 15 percent on the $20 million he made because the vast majority of his income comes from investments, not actual work as most Americans do and what most Americans pay taxes on.
Here are the current Tax Brackets on wages and salaries. (Source IRS)
- 0-$8,500 = 10%
- 8500 to 34,500 = 15%
- 34,500 to 83,600 – 25%
- 83,600 to 174,400 = 28%
- 174,400 to 379,150 = 33%
- 379,150 to infinity = 35%
The high end of 35 percent comes from former President George W. Bush who lowered it from former President Bill Clinton who had the high end rate pegged at 39.6 percent. The argument on ending the Bush tax cuts is over a 4.6 percent increase on the high end.
But the “Buffett Rule” legislation is about increasing taxes on investment income for people like Mitt Romney and Warren Buffet whose taxes on investment income are currently around 15 percent, the legislation would raise it to 30 percent. And as Warren Buffet who is worth an estimated $50 billion said, “his secretary pays a higher percentage rate on her income then he does on the billions he makes”.
So now you know the argument, as for the vote that the US Senate will hold April 16, 2012 on the “Buffett Rule”, 60 votes will be need to end cloture which would then allow the Senate to actually debate the legislation. But as we have seen in the past over and over again, the republicans will filibuster the cloture vote and there will be NO debate on the legislation.
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