Senate GOP poised to kill Buffett Rule

[babylonsister]

Posted with permission.

http://maddowblog.msnbc.msn.com/_news/2012/04/16/11224748-senate-gop-poised-to-kill-buffett-rule?lite

Senate GOP poised to kill Buffett Rule
By Steve Benen
-
Mon Apr 16, 2012 8:45 AM EDT


There's a strange loophole in the federal tax code. Those Americans who become wealthy thanks to private-equity funds -- hedge-fund managers, vulture capitalists -- get to pay a special, lower tax rate. The result is a tax policy dynamic that's obviously unfair: some millionaires end up paying a lower rate than most of the middle class.

Democrats have proposed closing the loophole with something called the "Buffett Rule," which would require those who make $1 million or more to pay at least a 30% rate, and the Senate is scheduled to act on the proposal today. Is there any chance the measure might pass? Well, no -- Republicans have vowed to kill the proposal with a filibuster when Democrats try to bring it to the floor this afternoon.

When the Senate minority prevents an up-or-down vote today, they'll not only ignore the wishes of most members of the Senate, they'll also ignore the wishes of most of the country -- Gallup reported on Friday that Americans favor the Buffett Rule, 60% to 37%.



As for why Republican lawmakers oppose the Buffett Rule, it's surprisingly tricky to get a coherent explanation out of them. Sen. Scott Brown (R-Mass.), an alleged moderate, explained late last week why he'll side with the far right against closing the tax loophole.

"We're in the middle of a three year recession," said Sen. Brown. "To raise taxes on anyone is a jobs killer."

First, we're not "in the middle" of a recession; we're actually at the beginning of a fragile recovery. Second, this isn't raising a tax; it's closing a loophole. And third, if Brown can explain in any depth why millionaire hedge-fund managers paying a lower tax rate than police officers creates jobs, I'd be very impressed.

Remember, this guy is what passes for Republican "centrism" in the 21st century.

As for the media, a variety of pundits have decided not to take today's Buffett Rule showdown seriously, dismissing it as a "gimmick." As others have already explained in detail, these pundits are making a mistake.

[Yupster]

1. I hate to say I don't understand the Buffet Rule

Is it to raise the capital gains rate to 30 % from 15 % just for those with $ 1 million of income?

The very rich keep most of their investments in municipal bonds which of course are tax free. Does the Buffet Rule make tax free bonds taxable for the very rich?

If it doesn't effect muni bonds, then millionaires aren't going to pay 30 %.

Anyone know answer to this?

[kentuck]

2. But they can't kill the political issue...

just before the election...

[bowens43]

3. Good. Get them on record.

[russspeakeasy]

4. It was never intended to pass. It's just bluster and a money raiser

for politicians on both sides.

[emulatorloo]

8. See post 7. Showing the Republicans for what they really are is important.

Most Americans want this. Republicans do not.

[russspeakeasy]

9. And most house/senate dems pretend to care.,

They know it won't get through, so it's easy to vote for.
It is a fund raising gimmick.

[Champion Jack]

5. Make them do it

Instead of all of these threats of the filibuster make them actually do it

[Prophet 451]

6. Of course they are

The GOP are now nothing more than the political arm of the American aristocracy.

[jwirr]

7. This is to be expected. The bill this time is meant to show the rethugs for what they are. 1%ers.