The term “shared sacrifice” gets thrown around a lot. Whether it is cutting the pensions on civil service workers or lying off teachers, shared sacrifice is used to try to comfort us about the decisions made. Shared sacrifice implies that we are all giving up something; the sacrifice is divided among all of us. However, this August something we all knew to be true was made public. The rich are excluded in this so called shared sacrifice. Earlier last month, Warren Buffett issued a statement asking Congress to “stop cuddling the rich” (www.nytimes.com). Buffet said in the letter, “While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks”(www.nytimes.com).
While the mega rich are enjoying the lowest tax rates in years, the Census Bureau reported that more that 46 million Americans lived in poverty in the year 2010 (www.cnn.com) According to Kohn that is the highest number of Americans living in poverty in 52 years (www.cnn.com). As stated in the letter, Warren Buffet and his mega rich friends pay a lower tax rate than their secretaries. Kohn says that in 2007 the mega rich paid around 17 % of their federal income tax while the middle class paid close to 25% of their income tax (www.cnn.com). The question all Americans keep asking is why does Congress believe that the middle class can afford to sacrifice a quarter of their income on taxes and the mega rich cant?
The explanation the Republican Congress keeps giving us is that higher taxes will hinder job creation and keep the rich from investing. As Puzzanghera reported House Speaker Boehner said "It's a very simple equation. Tax increases destroy jobs"(www.latimes.com) However, Warren Buffet says that is not true. In his letter he says that higher taxes on potential profit have never scared him away from a good investment. As he points out in 1992 the top 400 earners paid a tax rate close to 29% (www.nytimes.com). He also adds that “ And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000”(www.nytimes.com). While the rich are enjoying the lowest tax breaks in years the national unemployment rate is at 9.1 percent as reported by Becker (www.thehill.com). Therefore, the claim that lower taxes on the rich will create more jobs is absurd.
In September in front of both chambers of Congress, President Barack Obama presented his “American Jobs Act.” In the Act, one of the things he proposes is to close the loopholes that allow corporations and the mega rich to enjoy such low tax rates. This upcoming Monday, President Obama will propose a new tax standard on the rich as way to pay for his proposed jobs act. Kuhnhenn reports that President Obama plans to “set a minimum tax rate for taxpayers earning more than $1 million”(www.huffingtonpost.com) He plans on calling this the “Buffet Rule” after the man who asked to be included in the sacrifice felt by so many us.
Works Cited
Becker, Bernie. "Unemployment Rate Inches up in Presidential Swing States." The Hill. Web. 18 Sept. 2011. <Unemployment rate inches up in presidential swing states>.
Buffett, Warren. "Stop Coddling the Super-Rich." The New York Times. Web. 18 Sept. 2011. <http://www.nytimes.com/2011/08/15/opinion/stop-coddling-the-super-rich.html>.
Kohn, Sally. "Time to Raise Taxes on the Rich - CNN.com." CNN.com - Breaking News, U.S., World, Weather, Entertainment & Video News. Web. 18 Sept. 2011. <http://www.cnn.com/2011/09/14/opinion/kohn-tax-the-rich/index.html>.
Kuhnhenn, Jim. "Obama Debt Reduction Plan To Be Proposed." Breaking News and Opinion on The Huffington Post. Web. 18 Sept. 2011. <http://www.huffingtonpost.com/2011/09/18/obama-debt-plan_n_968378.html>.
Puzzanghera, Jim. "Obama to Propose Millionaire's Tax to Cut Deficit - Latimes.com." Los Angeles Times - California, National and World News - Latimes.com. Web. 18 Sept. 2011. <http://www.latimes.com/news/nationworld/nation/la-na-obama-millionaires-tax-20110918,0,7251514.story>.
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