By: Kourosh Behnam
February 27, 2012
During President Obama’s State of the Union Address he mentioned a new provision that he wanted to include in the corporate tax reform plan. He called it the Buffet Rule, which would require Americans making more than $1 million a year to pay an effective tax rate of 30%.
On Monday Warren Buffet explained to the american people that the rich and corporations do not pay their fair share of taxes.
Corporations have been enjoying record profits ($1.97 trillion in 2011) while the rest of us have been trying to make ends meet. According to the Congressional Budget Office, corporations payed an effective tax rate of 12.1% from their earnings. Warren Buffet, for one, who is not mentioned in IFG’s oligarchy report stated, “It’s a myth that American corporations are paying 35% or anything like it” He is referring to the top corporate tax rate. “Corporate taxes are not strangling Americans competitiveness.” This quote from Buffet was directed towards Rick Santorum on his article in the Wall Street Journal today about restoring American competitiveness.
It’s a good sign to hear one of the richest men in the world calling for higher taxes on the ultra rich and corporations. I just hope that our government can act fast before we fall behind in the global economy.