by Rick Henderson
Editor-in-Chief, Carolina Journal
You’ve probably seen the latest campaign in the class war from the Obama
Re-Election Campaign White House: Reduce the deficit by forcing millionaires to pay the same percentage of their income in taxes as middle class Americans do. Obama plans to call this exercise the “Buffett Rule,” noting that megagazillionaire Warren Buffett says his tax bill is proportionately lower than his secretary’s.
There are reasons for that: Nearly all of Buffett’s “income” comes from investments, which are taxed at lower rates than us working stiffs pay. His investment company Berkshire Hathaway also avails itself of tax exemptions, special rates on certain transactions, and loopholes, as it should, to maximize the returns to its clients.
Rather than focusing on Obama’s demagogic pitch to envious Americans, there’s a sound conservative response: Bring it on! Propose a flat income tax, with a large individual exemption but few (if any) loopholes.
This way Warren Buffett can pay the same tax rate as his secretary … and we can end a major source of unfairness and inefficiency in our tax system.