Obama calls Ronald Reagan a ‘wild-eyed, socialist, tax-hiking class warrior’

By David Ferguson/Raw Story

President Obama made the case today for the so-called “Buffet Rule,” which would mandate that the wealthy pay the same percentage of their income in taxes as middle class families.

He described for the audience the actions of one of his predecessors in the Oval Office, a president who “gave a speech where he talked about a letter he had received from a wealthy executive who paid lower tax rates than his secretary, and wanted to come to Washington and tell Congress why that was wrong. So this president gave another speech where he said it was ‘crazy’—that’s a quote—that certain tax loopholes make it possible for multimillionaires to pay nothing, while a bus driver was paying 10 percent of his salary.”

“That wild-eyed, socialist, tax-hiking class warrior,” he said, “was Ronald Reagan.”

Reagan, said the president, believed that everyone in the U.S. should pay their fair share, a position that would “disqualify him from the Republican primaries these days.”  He even suggested changing the name from the “Buffet Rule” to the “Reagan Rule” if that would make it a little easier for Republicans to bear.

Watch this video of President Obama’s remarks, embedded via CBS news:

Obama bashes ‘trickle down’ economics in Florida speech

By Eric W. Dolan/Raw Story

During speech in Florida on Tuesday, President Barack Obama said that “trickle down” economics never worked and called for Congress to pass the so-called “Buffett Rule.”

“This is not about a few people doing well, we want people to do well, that’s great,” Obama said. “But it is about giving everybody the chance to do well. That’s the essence of America. That’s what the American dream is about… In this country, prosperity has never trickled down from the wealthy few. Prosperity has always come from the bottom up, from a strong and growing middle-class.”

Trickle-down economics is closely associated with former President Ronald Reagan and the Republican Party. According to the theory, if the wealthy are taxed less, then they will invest more into businesses, creating jobs for middle-class Americans.

Obama said giving more tax breaks to millionaires and billionaires would not help the economy grow. Instead, he called for government investments in healthcare, research, veteran services, and education.

The Buffet Rule would require those earning more than $1 million per year to pay at least a 30 percent effective tax rate on their income. The rule is named after billionaire investor Warren Buffett, who lamented the fact that he paid a lower tax rate than his secretary. Although the wealthy are taxed at a higher rate than most Americans, they can drastically reduce their effective tax rate through tax loopholes.

The Paying a Fair Share Act would establish the Buffett Rule, and has been introduced to both chambers of Congress. Senate Majority Leader Harry Reid has announced that the Senate will vote on the legislation on April 16, tax day.

Watch video, courtesy of CNN, below:

Sen. Whitehouse proposes ‘Buffett rule’ bill to tax millionaires

By Eric W. Dolan/Raw Story

Sen. Sheldon Whitehouse (D-RI) introduced a bill to the Senate on Wednesday that would require those earning more than $1 million per year to pay at least a 30 percent effective tax rate on their income.

The bill, The Paying a Fair Share Act, would establish the so-called “Buffett rule,” which President Barack Obama called for in his latest State of the Union address. The rule is named after billionaire investor Warren Buffett, who has lamented the fact that he paid a lower tax rate than his secretary.

Republicans have condemned the proposed rule as class warfare.

“Now, you can call this class warfare all you want,” Obama said during his address to Congress in January. “But asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense.”

Whitehouse has pointed out in Senate speeches that the top 400 earners in America paid an average effective tax rate of just 18.2 percent in 2008.

Approximately 94,500 millionaires pay a lower effective tax rate than millions of families earning less than $100,000, according to the Congressional Research Service (PDF). The nonpartisan organization also found the Buffett rule was unlikely to affect many small businesses or investing.

“It’s time to give middle class families in Rhode Island and across the country the straight deal they deserve,” said Whitehouse, who began drafting the legislation several months ago.  “As we continue working to restore our economy, it’s more important than ever to make sure all Americans are paying their fair share toward our nation’s success – and right now that just isn’t happening.  It’s inexcusable that our tax system permits ultra-high income earners to pay a lower tax rate than a truck driver or a janitor, and this legislation would help fix that unfair system.”

The bill is cosponsored by Sens. Daniel Akaka (D-HI), Mark Begich (D-AK), Richard Blumenthal (D-CT), Tom Harkin (D-IA), Patrick Leahy (D-VT), Bernie Sanders (I-VT), and Chuck Schumer (D-NY).

“With a record-breaking $15 trillion national debt and a growing gap between the very rich and everyone else, it is absolutely absurd that the wealthiest people in the country are paying the lowest effective tax rate in decades,” Sanders said. “There is no excuse for millionaires and billionaires to have an effective tax rate lower than middle-class families.  If we are serious about addressing this deficit crisis, it is imperative that we have a tax system which is fair and which asks the wealthiest people in our country to pay their fair share.”

The bill would preserve the incentive for charitable giving by allowing wealthy taxpayers to receive a credit equal to the value of the charitable contributions deduction under the regular income tax.

The Paying a Fair Share Act is likely to face fierce opposition from Republicans in the House and Senate, almost all of whom have sworn to fight any and all tax increases.