This morning, the office of House Speaker Paul Ryan released a blueprint for tax reform that would overhaul major components of the U.S. tax code and lower taxes for households and businesses. The key details of the plan...
- NPR's Morning Edition quotes Will McBride on the Buf...
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.
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