Would Canadians block a “Buffett Tax”?

[US Republican leaders Sunday criticized President Barack Obama’s proposal for a new tax on millionaires, calling it “class warfare...” Sept. 19 London Free Press]

Let’s review:

One. Warren Buffett went on record about a month ago saying “rich people often pay less in taxes than those who work for them due to loopholes in the tax code, and can afford to pay more.” (Yesterday’s Free Press)

Two. Pres. Obama is expected to propose a “Buffett Tax” soon, on folks making more than $1 million annually, in the hopes of lowering the stratospheric US deficit.


["Can the US dig its way out of a ballooning deficit?"]

Three. Wood chips are hitting the fan. Paul Ryan, chair of the US House Budget Committee reportedly says of the tax, “It adds further instability to our system, more uncertainty and it punishes job creation and those people who create jobs. Class warfare may make for good politics but it makes for rotten economics.”

After reading the above statement I felt I should share a few thoughts of my own:

One. I agree with Warren Buffett. The rich - in Canada and the US - can afford to pay higher taxes and help reduce growing national debts.

Two. Ryan needs to ask himself how his business as usual approach (i.e., the current tax system) is helping the US economy at the moment, and if the job creators are actually creating jobs thanks to their low tax rate.


["Reduce spending. Pay down debt. Save for tough times ahead."]

Three. If Ryan thinks higher taxes makes for ‘rotten economics’, how would he describe the US economy right now?

Fortunately, I live in Canada and, according to Federal Finance Minister Jim Flatulence, our fundamentals are sound and we can continue to look forward to declining deficits and short lineups at the bank.

That being said, I will still raise one last question.

If Canada’s fundamentals change and the economy falters and the budget deficit and national debt grow and a rich business leader on par with Warren Buffett (one of the three richest people on Planet Earth) says the rich should pay more taxes in order to help out, will a Canadian version of Paul Ryan stand up to block any tax increase?

Just wondering.

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It won’t be me.

Please click here to read more about Warren Buffett and paying more taxes.

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