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Critical Thinking: "Balancing the Federal Budget-'The Buffet Rule' on Taxation " Because of the problems of balancing the budget of the United States in recent times, there have been calls from both parties for a balanced-budget amendment to the U.S. Constitution. This will require the Congress to pass a balanced budget each year. In order to do this, government spending, would need to be less than or equal to government tax intakes To do this two solutions are possible: cutting spending or increasing revenue (taxes). Many law-makers see the federal government as too large, and spending too high, especially on social services. Others say that taxation, especially to the very rich is too low, and that the super-rich do not pay their fair share in taxes. Warren Buffett, himself a part of the super-rich takes a surprising stand. Buffet's idea is to make sure that millionaires and billionaires pay at least the same percentage as middle-income taxpayers. President Obama has called this the "Buffett Rule." What do you think?
Source: Breena E. Coates, Professor, Department of Management, California State University San Bernardino, February 2012.
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