Today, Senator Harry Reid announced a revised version of the Jobs Bill that is contrast to what the Republicans, who do not want any tax rate increase at all, desire and get some of the Democrats, who opposse the Jobs Bill proposed by Obama. The biggest aspect of the revision is the 5% surtax for those who make more than a million a year. This surtax is expected to get the $445 billion dollars needed for the Jobs Bill in 10 years.
It is highly unlikely that this bill will pass the Congress. Reid conceded to make the surtax be 5.6% and take into effect in 2013, instead of 2012.
This bill is likely to be filibuster. Something needs to be done. The jobs are needed. The tax would help with this. The tax will only effect 330000 households in the United States which really is not that many people considering that the United States has over 300 million people here. It is only affects those who make a million dollars a year which is a large salary.
Wednesday, October 5, 2011
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6 comments:
It might take a little bit more than 445 billion dollars a year to keep the jobs plan afloat for any extended period of time. This (http://www.businessinsider.com/factsheet-obamas-jobs-plan-2011-9) website lists the basic goals of the jobs plan, and they are lofty goals indeed. I agree that the wealthy should pay more takes and contribute more to the society that allows them to live so extravagantly; but, paying for "Tax Relief for Every American Worker and Family" will get expensive, fast.
This plan has the right idea, but it is up in the air as to if the plan will actually work, and if it will be feasible monetarily.
The Obama adminstration agreed that for the Jobs Bill only 445 billion was needed and that was how they got that number.
I don't think it's fair to make those that make over a million a year to pay extra taxes. Yes, it would be nice if they contributed, but it wouldn't be fair to them. I'm sure they've put a lot of effort into making that kind of money and to make them pay extra wouldn't be right. I believe the government should find a different way of collecting taxes.
It may not seem fair to tax the wealthy more, but there is a lot of unfairness in America, and I think that a lot of the unfairness is not happening to those who make a million dollars a year. We need to revive the economy. If the rich are taxed more, it is unlikely that they would spend a lot less money. However, the money that they are being taxed help people get jobs, and they will spend money and fuel the economy.
Going back to Elise's comment, I think a common misconception is that Obama wants to additionally tax the super rich, or those who make more than 1 million dollars. Currently, they are paying less taxes than many middle class people because of many prevalent tax breaks and loopholes. I think it is absurd for the rich to not pay equal taxes compared to everyone else. The "Buffett Rule" that Obama is a proponent for actually came about when Warren Buffett said that he pays less taxes than his housekeeper. If this is true, the American government should really be looking back at how successful their current policy is because from what I see, it is not working very well. We have given this idea of "trickle-down" theory a try for many years and it obviously is not working.
Taxes on the wealthy have been debated for decades. However, economists seem to come to the same conclusion every time; Even if a graduated income tax was implemented, the revenue generated from such taxes would NOT provide the U.S economy with enough funds to neutralize the current national debt (which is currently in the trillions, if I'm not mistaken.) The problem with graduated income taxes like one proposed in this edited version of the Jobs Bill is that it wouldn't generate enough money to make a substantial difference in the national debt. A couple billion, perhaps, but that's nothing in comparison to the mounting debt we have today. The only real solution to the national debt issue is a creation of a new boom-industry, (perhaps green energy?), or a vast increase in taxes for people of all incomes. Obviously the latter is improbable, so I guess we'll just have to hope green energy or the like will generate a few more jobs.
PS: A million dollars actually isn't considered much in today's economy.
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