The wonderful thing about democrat proposals is that they always sound good. Affordable health care for all. Erasing the national debt. World peace through conversations. Yea!
However, the devil is in the details and maybe like Joe Boyd from Damn Yankees, the democrats may be making deals with the devil and spinning a story that usually unravels. A case in point is the Buffett tax or Buffett rule – which is getting a bit silly, Bush Tax Cuts, Buffett Rule, etc. I really don’t think we need to name these things as such. The proposal from the Obama budget would replace the AMT with the “Buffett Rule” (basically, a 30% tax on millionaires). However, it is projected to only raise $46.7 billion over 10 years and leave over 99% of the deficit untouched next year. The Joint Tax Committee scored the proposal and determined that swapping the Buffett Rule for the AMT would add $793.3 billion to the debt over the next 10 years.
The UK tried the millionaires tax and it demonstrated that it failed. Furthermore, tax planning professionals believe that with investment usage such as tax-free municipal bonds, many American millionaires could avoid the tax.
I think that either one needs to conclude that the Obama Administration is out to purposely redistribute wealth or they are so clueless that they really don’t understand the economy, business or reality.