Clinton Says January Tax Proposals Will ‘Go Beyond’ Buffet Rule –47jh.,b43
Democratic presidential front-runner Hillary Clinton will unveil proposals this month that will “go beyond the Buffett Rule” to raise the effective tax rates paid by the wealthiest Americans, she said Saturday.
“As president, I’ll do what it takes to make sure the super-wealthy are truly paying their fair share,” Clinton said in a statement responding to the Internal Revenue Service’s release of new data on tax rates paid by the 400 wealthiest U.S. households, which averaged 22.89 percent in 2013.
She called billionaire Warren Buffett’s plan, which would set the minimum effective tax rate for those earning $1 million per year at 30 percent, “one idea that would help achieve greater fairness in our tax system.”Since launching her campaign in April, Clinton has bemoaned what she sees as unfair tax policy, arguing it’s wrong “when hedge fund managers pay a lower tax rate than truck drivers or nurses.” Vermont Senator Bernie Sanders, her leading rival for the Democratic nomination, uses similar rhetoric, though the accuracy depends on exactly what’s being measured.
Obama for taking steps to push the effective tax rate for the wealthiest U.S. households higher in 2013, up from 16.72 percent in 2012.
“It’s clear that those at the top are still gaming the system and leaving hard-working American families holding the bag,” she said. “A quarter of the very highest earning taxpayers, those earning more than $250 million per year on average, pay a federal income tax rate of less than 20 percent. That’s not fair and it’s not good for our economy, placing burdens on middle class families and holding back investments that would help us grow.”Clinton has already put forward measures aimed at blocking corporate inversions and has vowed not to raise taxes on households making less than $250,000 annually.
Introducing Clinton at the rally, Buffett recited statistics about how incomes for the wealthiest people in the U.S. have gone up seven-fold during the last two decades, as their tax rates have fallen. While Buffett said he doesn’t condemn the rich, he said the odds were stacked in their favor.
“That’s a primary reason — there’s a lot of other reasons, but it’s a primary reason — why I’m going to be so delighted when Secretary Clinton takes the oath of office,” Buffett said. “She will never forget the people who haven’t shared the same way” in the nation’s prosperity.
Buffett became one of the richest people in the world by building Berkshire Hathaway Inc. into a sprawling conglomerate. In addition to holding major stakes in companies like Coca-Cola Co. and Wells Fargo & Co., his company owns insurers, electric utilities, retailers, manufacturers and a railroad.
The Democratic front-runner last week began rolling out her proposals on corporate taxes, pledging to work to stop inversions and earnings stripping, both practices involving shifting profits overseas. But, with Buffett sitting on stage behind her, she made no mention of those ideas. Buffett was involved with one of those maneuvers last year when he helped finance Burger King’s merger with Canada’s Tim Hortons.
source-bloomberg, jennifer epstein, noah buhayar,