“Buffett Rule” is name after Warren Buffett who is one of billionaires in America. Warren Buffett has claimed that the rich should not be paying a lower tax rate than the rest of the public. If “Buffett Rule” is passed by Congress, it raises the tax rate to at least 30 percent on anyone earning more than $1 million a year. Appearing in ABC TV show with his secretary on January 25, Warren Buffett supported Obama’s tax reform plan asserted in State of the Union Address.
“Buffett Rule” has aroused a controversy in the United States. First of all, people who agree with the “Buffett Rule” say that rate of taxation is not fair under current law. Although the amount of billionaires’s taxes is much higher than the amount of the middle class, ratio of taxation against national income isn’t. The burden of taxation should be fair to everyone in democratic society.
On the contrary to this, people who disagree with the “Buffett Rule’ assert that high taxation toward the upper class can raise economic problems, for example, decreasing capital investment and slowing down economic vitality. According to their opinion, “Buffett Rule” will make economic growth slowed.
In democratic society, the people are liable to taxation. Also, the tax burden is shared by all of nation in just proportions. ‘Just proportion’ does not mean that everyone should pay tax under the same rate of taxation. It means everyone feel the same pressure under taxation made by applying differential tax rates. Therefore, government should consider tax fairness. Unfair tax system makes worker who form a large majority in American economy lose their will to work. Furthermore, It causes the complaint of the people against the government.
To sum up, “Buffett Rule” is a kind of policies that makes state economy fair. Even though “Buffett Rule” does not solve completely all of the economic crisis that the United States faces, it lets discussions of tax rate continued. For this reason, the “Buffett Rule” has a lot of meaning.
- Minyoung Lee