Billionaire Warren Buffett told ABC News that taxes for the lower, middle class and possibly upper middle class should be cut even further.
He said, "I think that people at the high end - people like myself - should be paying a lot more in taxes. We have it better than we've ever had it."
Buffett says the rich always insist that if their taxes are lower and they have more money in their pockets, they will spend it and then it will trickle down; but he says that hasn't happened for the last 10 years. Buffett's not the only super-wealthy person to advocate paying more taxes. A group of 45 people who call themselves "patriotic millionaires" agrees.They're asking President Obama to allow the Bush tax cuts to expire at the end of this year for incomes over $1 million.
Do you think that the rich should be paying more taxes? If they were to pay more, would it be more effective than now?
I believe cutting taxes for middle and high middle class makes complete sense. As we can see for some time now that the middle class has been slowly disappearing. Furthermore, we have seen that the trickle down theory doesn't work. Its just a bad excuse for upper class individuals to hang on to their cash.
ReplyDeleteThe empirical evidence suggests that the Bush tax cuts have indeed not been very fruitful for the economy. In fact the decade after these tax cuts were employed has been the slowest in terms of growth.Growth from 2001 to 2007 was 2.39 % on average, which is the slowest since the second world war. The theory behind these tax cuts is that they will provide a lot of entrepreneurial skill to come through since more people will have the extra dollars to spend and so they will work harder to use that extra money. But the magnitude of this use remains unclear in a 15 trillion dollar economy and therefore I am not sure how far this can go in boosting the economy.
ReplyDeletehttp://economix.blogs.nytimes.com/2010/11/18/were-the-bush-tax-cuts-good-for-growth/
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