Barack Obama Taxes Pros And Cons

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President Barack Obama Tax Cut Proposal President Obama proposed a new minimum tax rate for individuals making more than $1 million a year to ensure that they pay at least the same percentage of their earnings as middle income taxpayers. He called his proposal the “Buffett Rule,” in reference to Warren E. Buffett, the billionaire investor who has complained repeatedly that the richest American generally pay a smaller share of their income in federal taxes than middle-income workers, because investment gains are taxed at a lower rate than wages. President Obama’s proposal is causing the opposition from Republicans, who have opposed raising taxes on the affluent Americans because they said, it would discourage investment. According to IRS reports, there were about 237,000 millionaires, or about 0.1 percent of all filers, that filed income tax returns in 2009. There were about 8,000 filers who reported gross incomes of more than $10 million. Thus, under Obama’s proposed Buffet Rule, about a quarter of a million millionaires would pay higher taxes. The marginal tax rate is the percentage paid on gross income. A wealthy tax filer pays the size of their income that is taxed at the top 35 percent rate. Middle-class taxpayers generally pay marginal rates of 15 percent or 25 percent. However,…show more content…
This would essentially mean that investment income is taxed just like any other income under the personal income tax. Long-term capital gains and qualified stock dividends are subject to two rates under the personal income tax, zero percent and 15 percent. (Most of this income is therefore taxed at 15 percent under the personal income tax.) These tax preferences are regressive; this tax system in which those with low income pay higher taxes than the wealthy is

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