Obama's plan to tax the rich would do little to solve the debt problem.
Debate Rounds (4)
President Obama says that Republicans are protecting millionaires and billionaires from increased taxes. He further implies that increasing such taxes could have a substantial impact towards balancing the budget. He has proposed a "Buffet Plan" whereby the rich would have to pay a minimum of 30% tax on income. This debate is about whether this plan would generate enough revenue to significantly reduce the ongoing deficits in the United States. Symbolic or social reasons are not a subject of this debate; it's all about the money.
The "rich" are people declaring an income of one million dollars or more on their Federal income tax returns.
President Obama's position that taxing the rich will make great strides towards resolving the deficits:
"“Do we want to keep these tax cuts for the wealthiest Americans or do we want to keep investing in everything else?” he said at an event in Las Vegas. “We can’t do both.” [P1. http://www.rawstory.com...... ]
The implication is that if the rich are taxed then we can continue "investing in everything else." The strong implication is that the tax increase would completely solve the deficit problem.
We can dismiss the idea of a 100% solution as political exaggeration. I think the tax would be a substantial contribution if reasonably expected to reduce deficits by at least 25% in the next ten years, independent of spending cuts. My opponent may argue that some lesser percentage is significant. Arguments that even tiny reductions are somehow significant are disallowed. Ultimately readers will decide if the plan would go a substantial way towards solving the debt problem.
The "debt problem" is continuing expenditures by the US Federal government in excess of revenues.
The importance of taxing the rich will probably be a focus of the presidential campaign this year. This is chance for DDO to get a head start on understanding the issue. I'm looking forward to a good debate.
Do not accept this debate unless you are an experienced debater, say having won at least five debates on having joined the site with substantial experience, and are prepared to cite data in support of your position.
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The challenge was posted for several days without anyone accepting, so accidentally killing it at this point is not too big a deal. It's time to move on to a new topic. Still, it's important to read challenges carefully before accepting. Questions can be asked in the comments before accepting if something is unclear.
The revenue is at most 3% of the deficit
An optimistic estimate of the revenue generated is
"In 2008, there were 236,883 tax filers reporting income of $1 million or more. The Patriotic Millionaires, a group advocating the repeal of the Bush tax cuts on tax filers making $1 million or more a year, estimated that their plan would raise $500 billion to $600 billion over 10 years." [P2. http://blogs.wsj.com...]
That includes implied savings in interest on the national debt. "the tax would actually raise $40 billion to $50 billion a year: equal to about 3% of the annual federal deficit." [P2]
The revenue would actually be substantially less than the optimistic estimate, because the rich are able to evade taxes by not taking capital gains and by moving money to offshore accounts. There are also complex tax avoidance strategies that flow from the 70,000+ pages of tax laws. [P3 http://www.businessweek.com... ] the goal is to have transactions that do not qualify as income. excluding deductions has no effect on something that is not counted as income in the first place.
The top 3% of earners are already paying 50% of the taxes under the current system.
The revenue raised would be trivial compared to the magnitude of the deficit problem.
The resolution is affirmed.
God_Soldier forfeited this round.
Con, please enter the word "pass" so we can get this over with.
My opponent had the courtesy to pass when I requested, so I think he shouldn't lose e conduct category.
He obviously didn't argue the topic, so my arguments in R2 stand.
I wish my opponent well in his future debates at DDO -- but with a careful reading of the challenge first!
God_Soldier forfeited this round.
1 votes has been placed for this debate.
Vote Placed by 16kadams 4 years ago
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