When $1 Million Isn't Rich Enough

Democrats are doing everything they can to make the Buffett Rule as the predominant issue of the week before it is subjected to a Senate vote on Tax Day. The rule—named after Warren Buffett's frequent refrain that his secretary pays a higher effective tax rate than the multi-billionaire investor—would force multimillionaires to give up some of their tax breaks until they pay at least a minimum rate of 30 percent. Obama is headed to Florida tomorrow to promote the bill, while his campaign is highlighting the rule as a campaign issue in contrast to Mitt Romney's tax disclosures he released earlier this year, which revealed that the probable Republican candidate paid taxes of just 13.9 percent on his $21.7 million in income in 2010.

I'm sure many of us at the Prospect will have more to say about the bill over the course of the next week, but one minor detail in the New York Times write up of the push is worth highlighting:

The Senate legislation would establish a minimum 30 percent tax rate for households earning at least $2 million a year, with a lower minimum rate for incomes between $1 million and $2 million. Such wealthy families would calculate their taxes normally, and using the minimum tax rate, then pay the higher amount.

It’s striking how modest a proposal this is for the Democrats’ big push on taxes. The bill does not force the wealthy to pay the actual top marginal tax rate, which at 35 percent is already near a historical low, far less than the top rate of 70 percent in the 1970s. With the $2 million cutoff the Buffett Rule won't even apply to most of the individuals and families who fall in the top marginal bracket.

When Barack Obama campaigned in 2008, he pledged to keep tax rates consistent for every family that earns less than $250,000 a year. That was already a low exclusionary bar; taxes will inevitably need to be raised in order to ensure the continued existence of the social safety net while also keeping the deficit in check. The figure also represents a large swath of the country's highest earners; to qualify as part of the top 10 percent of Americans based on annual income, one must only earn $108,000.

If implemented, the Buffett Rule would set $1 million as the de facto cutoff for who qualifies as wealthy. Even then, many people with an annual income of $1 million would be exempt from the full impact of the rule. Those who earn between $1-$2 million per year would only pay a portion of this additional tax and maintain an effective rate below 30 percent, a provision built into the legislation so that there is not a tax cliff at $1 million. The bill under consideration in the Senate would also maintain the charitable contribution deduction as a means to lower that 30 percent rate.

The class of super-wealthy Americans should certainly kick in an extra share for the country’s budget. Considering the vast disparities between the rich and the super rich, there is also good reason to create new brackets at the top of the marginal rates. But it is absurd to think that only those earning above $2 million can afford to pay this minimum tax, one that is still lower than the actual top rate.

Even with these narrow targets, the Times article notes that Democrats are not optimistic that the bill will clear a Republican filibuster next week.

Comments

Stem cells are “non-specialized” cells that have the potential to form into other types of specific cells, such as blood, muscles or nerves. They are unlike "differentiated" cells which have already become whatever organ or structure they are in the body. Stem cells are present throughout our body, but more abundant in a fetus.
Medical researchers and scientists believe that stem cell therapy will, in the near future, advance medicine dramatically and change the course of disease treatment. This is because stem cells have the ability to grow into any kind of cell and, if transplanted into the body, will relocate to the damaged tissue, replacing it. For example, neural cells in the spinal cord, brain, optic nerves, or other parts of the central nervous system that have been injured can be replaced by injected stem cells. Various stem cell therapies are already practiced, a popular one being bone marrow transplants that are used to treat leukemia. In theory and in fact, lifeless cells anywhere in the body, no matter what the cause of the disease or injury, can be replaced with vigorous new cells because of the remarkable plasticity of stem cells. Biomed companies predict that with all of the research activity in stem cell therapy currently being directed toward the technology, a wider range of disease types including cancer, diabetes, spinal cord injury, and even multiple sclerosis will be effectively treated in the future. Recently announced trials are now underway to study both safety and efficacy of autologous stem cell transplantation in MS patients because of promising early results from previous trials.
History
Research into stem cells grew out of the findings of two Canadian researchers, Dr’s James Till and Ernest McCulloch at the University of Toronto in 1961. They were the first to publish their experimental results into the existence of stem cells in a scientific journal. Till and McCulloch documented the way in which embryonic stem cells differentiate themselves to become mature cell tissue. Their discovery opened the door for others to develop the first medical use of stem cells in bone marrow transplantation for leukemia. Over the next 50 years their early work has led to our current state of medical practice where modern science believes that new treatments for chronic diseases including MS, diabetes, spinal cord injuries and many more disease conditions are just around the corner.
There are a number of sources of stem cells, namely, adult cells generally extracted from bone marrow, cord cells, extracted during pregnancy and cryogenically stored, and embryonic cells, extracted from an embryo before the cells start to differentiate. As to source and method of acquiring stem cells, harvesting autologous adult cells entails the least risk and controversy.
Autologous stem cells are obtained from the patient’s own body; and since they are the patient’s own, autologous cells are better than both cord and embryonic sources as they perfectly match the patient’s own DNA, meaning that they will never be rejected by the patient’s immune system. Autologous transplantation is now happening therapeutically at several major sites world-wide and more studies on both safety and efficacy are finally being announced. With so many unrealized expectations of stem cell therapy, results to date have been both significant and hopeful, if taking longer than anticipated.
What’s been the Holdup?
Up until recently, there have been intense ethical debates about stem cells and even the studies that researchers have been allowed to do. This is because research methodology was primarily concerned with embryonic stem cells, which until recently required an aborted fetus as a source of stem cells. The topic became very much a moral dilemma and research was held up for many years in the US and Canada while political debates turned into restrictive legislation. Other countries were not as inflexible and many important research studies have been taking place elsewhere. Thankfully embryonic stem cells no longer have to be used as much more advanced and preferred methods have superseded the older technologies. While the length of time that promising research has been on hold has led many to wonder if stem cell therapy will ever be a reality for many disease types, the disputes have led to a number of important improvements in the medical technology that in the end, have satisfied both sides of the ethical issue.
CCSVI Clinic
CCSVI Clinic has been on the leading edge of MS treatment for the past several years. We are the only group facilitating the treatment of MS patients requiring a 10-day patient aftercare protocol following neck venous angioplasty that includes daily ultrasonography and other significant therapeutic features for the period including follow-up surgeries if indicated. There is a strict safety protocol, the results of which are the subject of an approved IRB study. The goal is to derive best practice standards from the data. With the addition of ASC transplantation, our research group has now preparing application for member status in International Cellular Medicine Society (ICMS), the globally-active non-profit organization dedicated to the improvement of cell-based medical therapies through education of physicians and researchers, patient safety, and creating universal standards. For more information please visit http://www.neurosurgeonindia.org/

If this is will pass in the Congress or the Senate this will create a bias idea to all citizen whether it is for the rich or for the poor or the middle man. Anyway we cannot just sit down doing nothing it is best to raise our voice let us always fight for what is fair for the rich and the poor. Their must be balance in this two kinds of individuals, we cannot allow this things to happen in our society.

----------------------------------------------------------------------------
get the best steel

If this is will pass in the Congress or the Senate this will create a bias idea to all citizen whether it is for the rich or for the poor or the middle man. Anyway we cannot just sit down doing nothing it is best to raise our voice let us always fight for what is fair for the rich and the poor. Their must be balance in this two kinds of individuals, we cannot allow this things to happen in our society.

----------------------------------------------------------------------------
get the best steel

You need to be logged in to comment.
(If there's one thing we know about comment trolls, it's that they're lazy)

Connect
, after login or registration your account will be connected.