Fortune.com
Tax cuts below 20% for the high income individuals seem to not please everyone.
Buffet suggests that tax should go up back to its normal rate for the upper bracket families since the federal government needs more public saving, and this composite of the economy can definitely afford that without much tears and sweats.
This time, he suggests that tax cut should be given to people outside the upper bracket, since this will help boost consumption in the economy. Buffet didn't say anything about it before, saying that "nobody asked him." The implication of this question in this article is unclear, but sympathizes with people of the lower class? Maybe.
Anyway, this seems to be a good idea, doesn't it?
Even though this might seem a little unfair, since the poor spend most of the earnings on consumption whereas the rich tend to save, this seems like a good solution to reducing the budget deficit. This does not have to continue in the very long run but it is a good solution for the short run.
ReplyDeleteThis will work well in the short-run, but the mindset needs to shift in the future. In a time where everyone is pressing for money, government spending needs to decrease, so these taxes on the wealthy don't continue to discourage investment. Continuing to add to the deficit through government spending has become counterproductive at this point.
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