For more on corporate taxes, see Kyle's recent study "U.S. Multinationals Paid More Than $100 Billion in Foreign Income Taxes."
- NPR's Morning Edition quotes Will McBride on the Buffett Rule
NPR's Morning Edition quotes Will McBride on the Buffett Rule
Would The Buffett Rule Help The U.S. Economy?
By Jim Zarroli
March 11, 2012
Under the Buffett rule, people who sell assets would suddenly be forced to pay much higher taxes on the profits they make. Will McBride, an economist with the Tax Foundation, says many people would rush to unload the assets they hold before the law takes effect.
"If this tax were to go into effect Jan. 1 of next year," McBride says, "the stock market in December would not look pretty."
Over the longer term, McBride says, the law would do even more damage to the economy. Because people would have to pay more taxes on the profits they make, they would have less incentive to invest, he says.
As a result, McBride argues, small startups would suffer. "You don't want to heavily tax investment, because you're taxing the thing that creates long-term economic growth," he says.
In his annual budget briefing, Rhode Island Governor Lincoln Chafee (I) proposed a reduction of the state’s corporate income tax rate from 9 percent to 7 percent over the next three years....
Professor Martin Feldstein of Harvard has called for limiting the tax savings from itemized deductions, tax-exempt municipal bond interest, and the tax-free status of employer-provided health insurance....