President Obama called a new tax rate for people whose annual incomes are less than 1million. Even though he did not mentioned the specific rate, but this new tax policy is aimed to cut the wealth of millionaires. The administration is supposed to replace the alternative minimum tax policy that set up decades ago, but people are not optimistic that this policy will be written into the lax. President Obama’s this proposal is certain to draw opposition from the republicans, but I think it will discourage the investment, which is not good to the current economic situation.
Saturday, September 17, 2011
Obama Tax Plan Would Ask More of Millionaires
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I think that lowering taxes for those who make under $1mil is an excellent idea. For those "in Ohio, where people are struggling paycheck to paycheck” this will give them a little more money to work with, and while they are most likely not going to invest the extra money, their quality of life will slightly improve, and they will be spending their money at more stores/businesses etc.
ReplyDeleteThe wealthy who make more than $1mil, will continue investing their money regardless if they are taxed more. They already make more than $1mil per year, so it's not like they will have to change their lifestyles of investments in the slightest bit.
The poor live paycheck to paycheck, the wealthy live comfortably regardless of their yearly income because they already have financial security.
Because the Republicans are so adamant about keeping the rich as wealthy as possible, it will be very interesting to see how they will respond to this in congress. How can they argue with this proposed tax change while still appealing to the hard-working blue-collar workers that they claim to so dutifully represent?
By reducing the tax rate for people who have an annual income less than $1 million will help them gain some extra spending money to survive each month. But to tax the rich even more won't affect the rich in the long run since they are already rich and they will keep investing and spending money which will increase the consumption rate. Extra tax money will maybe help with government deficit too.
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