Related News
Obama set to call for 'Buffett tax' on the rich
Source: Agencies |
September 19, 2011, Monday
|
Print Edition
Print Edition
US President Barack Obama, in a step designed to appeal to voters, will propose a "Buffett tax" on people making more than US$1 million a year as part of his deficit recommendations to Congress today.
Such a proposal, among suggestions to a congressional committee expected to seek up to US$3 trillion in deficit savings over 10 years, would appeal to his Democratic base ahead of the 2012 election but may not raise much in revenues.
White House communications director Dan Pfeiffer said on Saturday the move would ensure millionaires pay a minimum rate of tax that at least matches that of middle-class families.
The "Buffett tax" refers to billionaire US investor Warren Buffett, who wrote earlier this year that rich people like him often pay less in tax than those who work for them due to loopholes in the tax code, and can afford to pay more.
While Obama outlines his tax on the rich, he is also expected to call for further steps to raise tax revenue as well as make cuts in government spending.
Those could include reforms of government healthcare programs for elderly and poorer Americans. The White House has already said Obama will not recommend changes to the popular social security federal retirement plan.
Obama, who has been hammered in opinion polls over his handling of the faltering economy, wants to use his plan to counter Republican claims he is a "tax and spend" liberal as he campaigns for re-election next year.
Congress is at liberty to ignore his suggestions, and Republicans, who control the House of Representatives, have said they will not agree to tax rises.
If the president pushes for tax increases that stand little chance of being passed by a divided Congress, it may help him blame lawmakers for thwarting his plans at a time when the public's opinion of Congress has touched record lows.
But he is also under pressure to show leadership after rating agency Standard & Poor's cut the country's triple-A credit rating, and as investors scrutinize Washington for evidence it can curb the country's towering deficit and mounting debt.
The committee of six Democratic and six Republican lawmakers must find at least US$1.2 trillion in deficit savings before the end of the year to avoid painful automatic cuts, and is mandated to seek savings of up to US$1.5 trillion.
Those savings are on top of US$917 billion in deficit reduction agreed in an August deal to raise the US debt limit and Obama wants the committee to go further.
He has separately urged the committee to consider US$467 billion in tax increases to pay for a jobs bill he unveiled earlier this month.
Such a proposal, among suggestions to a congressional committee expected to seek up to US$3 trillion in deficit savings over 10 years, would appeal to his Democratic base ahead of the 2012 election but may not raise much in revenues.
White House communications director Dan Pfeiffer said on Saturday the move would ensure millionaires pay a minimum rate of tax that at least matches that of middle-class families.
The "Buffett tax" refers to billionaire US investor Warren Buffett, who wrote earlier this year that rich people like him often pay less in tax than those who work for them due to loopholes in the tax code, and can afford to pay more.
While Obama outlines his tax on the rich, he is also expected to call for further steps to raise tax revenue as well as make cuts in government spending.
Those could include reforms of government healthcare programs for elderly and poorer Americans. The White House has already said Obama will not recommend changes to the popular social security federal retirement plan.
Obama, who has been hammered in opinion polls over his handling of the faltering economy, wants to use his plan to counter Republican claims he is a "tax and spend" liberal as he campaigns for re-election next year.
Congress is at liberty to ignore his suggestions, and Republicans, who control the House of Representatives, have said they will not agree to tax rises.
If the president pushes for tax increases that stand little chance of being passed by a divided Congress, it may help him blame lawmakers for thwarting his plans at a time when the public's opinion of Congress has touched record lows.
But he is also under pressure to show leadership after rating agency Standard & Poor's cut the country's triple-A credit rating, and as investors scrutinize Washington for evidence it can curb the country's towering deficit and mounting debt.
The committee of six Democratic and six Republican lawmakers must find at least US$1.2 trillion in deficit savings before the end of the year to avoid painful automatic cuts, and is mandated to seek savings of up to US$1.5 trillion.
Those savings are on top of US$917 billion in deficit reduction agreed in an August deal to raise the US debt limit and Obama wants the committee to go further.
He has separately urged the committee to consider US$467 billion in tax increases to pay for a jobs bill he unveiled earlier this month.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
