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Hume: The Warren Buffett Rule

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    Does tax code coddle the rich?

  • Duration 2:49
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About the -- Deficit reduction plan which includes tax hikes on high income earners.

Senior political analyst Brit Hume is here with some thoughts about the man who -- come to symbolize that effort Warren Buffett.

Who says his own secretary is taxed at a higher rate than He would skidding Brit I'm -- -- -- for Warren -- He knows how to make a big noise with a small point two months ago He argued in the New York Times that our tax code cardinals the super rich.

He was talking of course about a small number of Americans with the extremely high net worth whose income is mostly dividends and capital gains from their accumulated wealth.

Such income is taxed at about half the rate that is paid on the salary is that most Americans live -- True enough as far as it goes but it doesn't go very far for one thing it ignores the fact that most dividends and capital gains as a result of corporate profits.

Home which regular income taxes have already been paid.

So such money of all all actually taxed twice.

Indeed the latest data show that the richest 1% of US taxpayers pay 38% of the income tax burden.

And the top 10% pay nearly 70%.

None of this has stopped the president with considerable slight of hand from citing buffet in arguing for higher tax rates.

That would hit countless people who were neither millionaires or billionaires.

Mr.

Obama does not mention the other larger point in the -- article would -- job one for congress should be quote.

To pare down some future promises that even a rich America can afford big money must be saved here said mr.

Buffett and quote.

Well He was talking of course about entitlement spending about which mr.

Obama yesterday propose to do.

Almost nothing.

-- for just a few weeks ago.

The word that really came up the most in president Obama's speeches.

Was compromise.

Now after this Rose Garden presentation.

It is it complete change what does -- say about.

Him politically.

Right well normally what you do and an election cycle.

-- you try to secure your base first.

And then you reach out to other voters.

The president is acting like a man who does not feel He is his base is secure.

That he's worried about rallying Democrats behind him -- you're beginning to hear you know here and they are grumbling in democratic quarters.

That He is not for providing the leadership they want on the issues they -- so He comes out swinging.

With this old time religion horn book democratic politics tax the rich.

And so one plan.

And one senses that He has no hope that -- day rally -- -- -- cause any bipartisan agreement.

But I think He does think it will.

Bring his -- around that's only makes sense to me.

And the risk is independence while the other risk is that you don't do anything good to bring independents back who elected -- in 2008 and deserted him in Torrington.

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