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Where is the Fairness in the ‘Buffett Rule?

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  • Description

    FBN’s Lou Dobbs breaks down the numbers behind the “Buffett Rule.”

  • Duration 7:13
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This transcript is automatically generated

Ring to it does that so we're gonna enshrine something here a little truth or just as much as Washington can stand maybe even a little more.

The so called Buffett rule well let's start with a couple of -- the so called Buffett rule.

First what I can understand.

What we want to point to rule.

But there and it's.

It'll bring in 47 billion dollars.

Over ten year -- Parents.

Really parents.

One thing the buffer rule is certainly not about.

He is -- fairness or Smart policy because it ignores a lot of facts.

It would bring in only 47 billion dollars over the next ten years.

That's less than the federal government spends are you ready for this in five days even President Obama admits the so called Buffett rule.

Is nothing but gimmickry.

There are others are saying well there's just a gimmick it's -- -- it just.

Taxing millionaires and billionaires just imposing the Buffett rule won't do enough to close the deficit.

Well.

-- -- That's not all we have to do to close the deficit.

Not all it's a gimmick because well let's let's say it's a gimmick because of its incomplete.

Honesty.

Let's take a look at the real taxes that Americans pay and you decide.

What have you heard this before in why haven't your heard it from the administration and this president as he talks about -- Buffett rule.

According to the Internal Revenue Service data.

People who make more than one million dollars and adjusted gross income.

Pay an average income tax are you ready for this.

23.

23.

Point three.

-- that's that's a million -- us.

Right.

Those making between 500000 and a million -- put that down and us.

500.

OK and they pay an average of 24.

Point 1%.

-- four point want.

Percent.

Out startled look.

Report that 17%.

That Warren Buffett talked about.

Doesn't have much relevance here does it.

Now this is about parents right.

So rich people like Warren Buffett.

You know what are they doing earning more from our camp or gains and dividends.

And that's tax of about 15%.

We just put them here.

But those earning between 150000.

Dollars so called middle middle class wages.

The fifth.

Eight to a country in the cost.

Of their average.

Tax effective -- We'll rounded off it's eight point nine I -- -- up I'll write down eight point and I won't round them up from 9%.

Eight point 9%.

Millionaires -- 23%.

Middle class and -- point nine an effective -- Millionaires paying now -- little about two and a half times that.

Those learning -- -- And learning.

Under 50000 dollars a year paid on average about 7%.

Meaning millionaires paid more than three times what they -- So of course there's fairness thing.

And taxing millionaires that a 30% -- and it doesn't make a lot of sense another another number for you to consider if you will.

I'm gonna take down the 15% on.

-- -- -- carried interest if you -- -- get end of that.

But I think it's important -- think about the top 10% of earners in this country.

As -- where we're talking about here that's right the president likes to talk about this.

-- Top 10% of earners.

-- seven -- 3%.

Of all income tax.

73%.

And the truth is even a 100% tax on millionaires.

Would only fund two and a half months of government operations.

So perhaps a president.

Should look for another get the sell the American people because that's what is it gonna fly very long.

-- because people are paying their fair share of taxes and the president also wants the buffer room to replace an Alternative Minimum Tax purposes original -- -- The AMT the Alternative Minimum Tax.

You know it's not supposed to kick in and hurt anybody.

Its -- have actually been taken care of but here's a little ugly secret about AMT if I can share that with you.

AMT.

If it were to be eliminated.

-- We would lose somewhere between over the next ten years 800.

Billion.

21 and a half.

A trillion.

Dollars.

You say so -- Well here's the so what part.

Half.

Half of this money this is there this is the government estimate.

And I won't be too hard on on for making it such a broad estimate.

But the fact is that half of this amount whichever it would be but it's 800 whether it's a trillion whether it's -- -- -- Is paid by those households earning.

Between a 150000.

And 200.

Thousand.

Dollars a year.

The president wants to talk about fair.

Let's get series.

Is that really fair and I know it's a little more complicated.

Than talking about four point seven.

Billion.

A year earth.

And by the way.

The whole thing is of fiction.

It's not the buffet wrote.

And it's not about fairness because it -- -- even deal with the greatest unfairness within the code.

And the fact is that the code is already.

Amongst the most progressive tax codes in the world.

For millionaires.

And beneficial -- to those in the middle for -- the fact is the whole thing is a pile -- straw.

And this president.

Is I think missing the real point the real problems to be solved.

And if you wanna focus on the tax code let's reform or -- -- Interests are concerned it's not really but Buffett rule from now on we're gonna call it what it is.

It is the Obama.

-- -- Are we all.

-- what it is what it back.

Up.

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