Buffett Rule Defeated

Today Republicans defeated a Democrat-backed piece of legislation that required millionaires (literally, people making more than a million dollars/year) to pay a minimum income tax of 30%, which is just about the national average for middle class tax payers.

The legislation came after millionaire Warren Buffett announced that his tax rate was lower than his secretary, and that he and other millionaires should pay at least as much as the middle class Americans who pay close to 30%. Tens of thousands of wealthy Americans are paying a lower percent of their income to taxes than their middle class neighbors. This is possible because it is easy to mix and match capital gains and avoid taxes, legally. The more money you have the more you can mix and match.

Apparently, Republicans are very comfortable slashing Medicare (see the recent budget they pushed through the House) and most recently eminent GOP presidential nominee Mitt Romney announced his plans to combine or totally dissolve federal departments of Education and Housing and Urban Development. The justification for these rash measures is that we are spending too much and have massive debt. If that is the argument, then why not let the mega rich pay the same 30% that most middle class people pay? Why are we burdening the middle class with more taxes so the wealthy can pay less?

Republicans counter that taxes taken from individuals represent less money spent in the economy. They say that increasing any tax would stifle the economy. "Let the rich avoid taxes so we can fuel the economy!" This is the crux of trickle down economics.

The great irony is that even Reagan, the imagined champion of trickle down economics and all things conservative shared the liberals exact same opinion on this issue. Years ago he stomped the nation with a complaint similar to Warren Buffett. Reagan demanded change so that the super-wealthy did not pay a lower percent of their taxes than the middle class. If you don't believe me, check out this well cut video comparing Obama and Reagan's nearly identical please for legislation requiring millionaires to pay equal or more than the middle classes:

So if Reagan and Obama are on the same page, why can't the bill pass? Because politics today is more about who's side you are on than what you believe in. No self-respecting Republican will vote for anything a Democrat suggests. Such a move would be political suicide. Are Democrats any different? I don't know. But what we do know is that in this climate every politician is looking out for themselves and America comes last. If you don't like it, call your local representative and complain, and then maybe for fear of losing their job they will do what is right.

Republicans argue that they are not simply protecting rich people but rather saving