Millionaire Surtax? Is That Better Than A Buffet Rule?
President Barack Obama is still traveling the country pushing his American Jobs Act and asking for bipartisan support, but back in Congress, many are still fretting over how to pay for the initiatives.
But Senate Majority Leader Harry Reid thinks he has an idea: a “millionaire surtax.”
The Democratic Senator is believed to be considering a 5 percent tax on millionaires, such as Democrats proposed during the health care reform battle.† The administration is ambivalent at this point, saying they will consider anything that covers the costs and ensures everyone pays their “fair share.”† But once again, the tax, which is expected to get broad support in the senate, would likely die over in the House, where Republicans are still insisting no taxes at no time.
And with Republicans already beginning to attempt political gamesmanship with the bill, such as Senate Minority Leader Mitch McConnell’s maneuver to attach it to the China currency bill in order to kill both measures at once, bipartisan agreement on any part of the package is starting to look more and more unlikely.
Should all millionaires pay an additional 5 percent tax?† Or should the tax rate be raised on investment income and capital gains, as it would be if the Buffett rule passes?† Or is there another revenue-generating solution out there that hasn’t been proposed?† Which do you prefer?