Taxing millionaires and billionaires more – a position advocated by billionaire Warren Buffett and President Barack Obama – won’t make much of a dent in the national debt or the record federal budget deficits, a new study finds.Why? The answer is simple - there are not enough US citizens who make a Million Dollars or more. It is interesting to note that even though President Obama has used the terms "...millionaires and billionaires need to pay their fair share...", the fact is President Obama will start taxing at the $200,000.00 level. Why? Because apparently he considers someone who makes $200,000.00 a millionaire?
“Even taking every last penny from every individual making more than $10 million per year would only reduce the nation's deficit by 12 percent and the debt by 2 percent,” the non-partisan Tax Foundation’s David Logan writes.Something else to consider. Fortunately for our life savings, the Tax Laws do not tax that which we have already accumulated, only the growth is taxes. That is one reason that Millionaires and Billionaires do not pay as much taxes. They have already earned the money that makes them Millionaires and Billionaires. They have already paid taxes on the ACCUMULATED millions and billions they have.
“My friends and I have been coddled long enough by a billionaire-friendly Congress,” wrote Buffett.Therefore unless we wish to change the Tax Law to include some sort of "look-back" provision, the fault Mr. Buffett sees is in the past when he acquired his wealth. By the way this is still wrong headed thinking, because if Mr. Buffett and friends had not been "coddled" by Congress, they wouldn't be where they are today. And more importantly, the jobs they created when they earned their wealth would not exist. We would all be a lot poorer if they had not been "coddled
".[A]ccording to the Tax Foundation study written by Logan, even taxing the nation’s millionaires at 50 percent – even eliminating loopholes and deductions – would only reduce the deficit by 8 percent and the national debt by 1 percent.The truth is that we cannot pay our national debt with taxes, unless you wish to consider this:
In fact, the only way for the government to solve its fiscal issues with revenue would be to confiscate every single dollar from every single American making $200,000 or more per year, the study saidIt is clear that the best way to pay off our National Debt is to reduce spending. Raising the Debt Ceiling should only be a stop-gap measure to insure that our credit standing is maintained. As the Standard and Poor's reasoning for the downgrading of the US Credit rating indicates: The problem is the unstanable level of spending by the Government.
We currently use over 40 cents of every dollar borrowed just to pay the interest on our National Debt. Congress does not have the will power to reduce spending but a Constitutional Admendment requiring a balanced budet would make Congress feel the will power of the people they represent.