Reflecting on Buffett's old adage that his tax rate is lower than Bosanek's, Obama again brought up the controversial "Buffett Rule" which, as proposed, would require those earning a million dollars or more to pay at least a 30% effective tax rate. Under the current tax system, Basanek reportedly pays a 35.8% rate. Her boss, meanwhile, pays 17%.
In an interview with ABC News following the president's address, Buffett, a long- time proponent of tax reform, defended the plan and attempted to silence detractors. Seated next to Basanek, the billionaire investor stated, "People like to make money, and they make it if the tax rate is 15% each year and they make it if the tax rate is 30% each year." Buffett went on to say that the fact that his secretary pays twice the rate he pays is, "outrageous."
With the U.S. and global economy still working to regain its footing on the road to recovery and Washington in the midst of a heated election season, debates and discussions are sure to stay at a fever pitch. It will be interesting to see where Buffett chooses to make his voice heard next.
What are your feelings on the Keystone XL pipeline and the proposed Buffett Rule? Feel free to leave a comment in the space below.Written by Don Dion in Williamstown, Mass.