Senator Chuck Schumer (D-NY) questioned the Treasury Secretary this morning about why they are proposing tax increases for those making $250,000 a year but the Buffett Rule begins at $1 million. It’s an interesting question, if the Obama administration considers $250,000 “rich”, why does the Buffett Rule begin at $1 million? On the flip-side, if $250,000 isn’t rich but middle class as Senator Schumer says, then why does the administration want to raise taxes on the middle class?
Sen. Chuck Schumer (D-NY): “Okay. Just one final point. This is a place the administration and I have disagreed and that is on 250,000 versus a million. I know the revenue concerns with 250,000. The problem is in my state, I imagine in certainly Senator Menendez, Senator Kerry, Senator Cantwell's state, there are a lot of people who make above 250 who aren't rich. Property, much more expensive. Taxes higher, et cetera, et cetera, et cetera. And so if the administration believes 250 is the right cut-off for capping deductions and extending the Bush tax cuts, why isn't it also proposing a Buffett Rule that hits on the same rung of the ladder? Why don't we just all move to the nice million dollar Buffett Rule?”
Treasury Secretary Tim Geithner: “Excellent question. Well phrased and of course I'm familiar with your views on this issue. We’ve talked about it a lot. But, again, we're trying to balance a lot of different competing considerations. And we're trying to figure out what is the most fair way given the fiscal realities we face to make sure that we can support the types of investments, benefits we think we need. That's why we're making this choice. But, of course, we understand and respect your proposal.” (Committee On Finance, U.S. Senate, 2/14/12)
Budget and Spending Taxes