The Debate Over Fair Tax

637 Words3 Pages
A 'fair'/ tax depends on how one defines 'rich' As Grosz (2012) notes this is not so simple; for Obama it was anyone earning more than $250,000 a year. Obama, too, tried to hike tax on the wealthy, but it seems to be the middle-class who are actually getting the shorter end of the stick since the extreme rich don't make their money from working but rather make it from investments, capital gains and dividends (e.g. Condon, S. (December 19, 2012)). The Obama Administration believes that economic distribution is more important than economic growth with money being used for "entitlement programs" (social security and Medicare) and infrastructure improvement. Obama had, originally, insisted that taxes should be increased for anybody earning more than $250,000 whilst money would be spared for the poor. Even the Republicans agreed with this idea. But given this scenario, the wealthy will only receive a gentle lowering in their taxes, whilst it is the middle class who will largely be affected. (Grosz, D. (Dec 19, 20. This supports Warren Buffet's saying about how he is paying less income tax than his secretary. Buffest earned $46 million last year and was taxed a mere 17.7 per cent, while his secretary who earned $60,000 was taxed 30%. Buffet, after all, super rich as he is, is not working. He doesn't need to rely on salaries and wages for his income. After all, he (and others like him) is making his money from investments, capital gains and dividends; making his money while he
Open Document