Taxing the Rich: Local Views

By: Rachel Markin Email
By: Rachel Markin Email

"Why should I have to pay more for taxes if I'm making a lot less?" said local photographer, Tony Wycihowski.

It's the same question billionaire Warren Buffet asked the U.S government.

Why, should he be taxed less than his secretary, who does not make as much as him?

In fact, Buffet's public criticism of the current tax policy has been named The Buffet Rule.

And President Obama wants to use the rule to tax America's wealthiest, those who make more than $250,000 a year.

"I will not support any plan that puts the all burden for closing our deficit on ordinary Americans," said President Barak Obama.

According to the National Tax Payer Union , millionaires contribute almost 40% of all taxes even though they only represent 20% of all income.

The typical millionaire's salary is taxed at ordinary income rates , but any profit they recieve is taxed at a much lower rate, the Capitol Gains Rate.

"By having a lower tax rate it encourages millionaires to go out and invest in the economy," said financial expert Jeanne Fisher.

So if taxes are raised for the wealthy, well some say it could affect job stimulation.

"A lot of what we're arguing as we look at all these political issues is a short term fix versus and long term fix. Yes I think it would put more money to the government, but in the long run, the more you tax those who have the means to re-invest in the economy, the less likely they are to re-invest in the economy..the less they will create jobs for people like you and me," said Fisher.

But not everyone believes there would be less jobs if the wealthy were taxed.

"They've already got the money, we've got a 9% unemployment rate, they're not investing the money in giving us jobs."

Which leaves us asking would taxing the wealthy heal the economy? The answer could be tricky.

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