Christy French, although well intentioned, simply does not understand the 'Buffet Rule'. The Buffet Rule is disguised as an increase of the income tax rate, when in reality it would double the capital gains tax rate from a competitive 15% to a whopping 30%. This dramatic increase in a tax that was designed to spur capital flow into the United States would result in the fourth highest rate in the world. Couple that with our already highest corporate tax rate, and the result would be devastating: less investment and fewer jobs. In other words, the Buffet Rule would hurt the middle and lower class.
Also, if the Buffet Rule were enacted, it would result in, at most, a meager $5 billion dollars per year of new revenue to the government. As Charles Krouthammer puts it, we would have to collect monies from this tax for the next 250 years to pay for President Obama's 2011 deficit alone. So clearly, this is more of a class warfare tax used solely for political purposes, than a serious deficit reducer.
I agree with Ms. French, however, that the tax code is unfair. But it is actually more unfair for those in the upper income tax brackets. The top 1% of income earners in our country pay 39% of the total income tax, while almost 50% of Americans pay no income tax at all? This makes it difficult for job creation when the job creators are also paying the taxes for a significant portion of the population.
The Buffet Rule is bad for America. While it may be good politics for President Obama and Ms. French, in reality it will result in zero deficit reduction, fewer jobs, and more unfairness in the tax code. Don't be fooled by the politics of the Buffet Rule.
New Mexico State Senate Republican Candidate for District #38