Sen. Cornyn: Buffett rule a 'Trojan horse'
Republican lawmakers blasts 'gimmick'
- Duration 4:48
- Date Apr 16, 2012
Republican lawmakers blasts 'gimmick'
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The US senate voting today on the so called Buffett rule proposal requires Americans who earn more than a million dollars a year to pay a minimum of 30% in federal taxes and -- very popular.
When Americans look at the latest Gallup polling data 60% of Americans favor -- 37%.
Republican John Cornyn from Texas is on the Senate Budget Committee joins us live from Capitol Hill and senator always good to talk to you thanks very much like you the look given the popularity of this on.
Is it on why -- for your party Republicans.
-- oppose it.
Well I think we need to put it in context in the that the fact is that this Buffett rule which are essentially will eliminate capital gains.
Or people who pay -- income taxes on an individual tax -- that includes a lot of businesses.
Will discourage investment at a time we need the private sector to invest -- to create more jobs to bring unemployment down.
And the president himself admits that this will not fix the problem with this fifteen trillion dollar debt it's a drop in the bucket.
And what we really need.
Instead of this distraction instead of this.
Attempt to divide Americans along class lines is real tax reform like the president's own bipartisan fiscal commission recommended.
In December of 2010 which he's ignored.
-- -- senator that the plan actually only affects a fraction of the American population about.
In in -- -- 22011.
Treasury Department study found.
That it would only affect a very small proportion of business is so given that.
And juxtapose the popularity of this among the American people.
Again why oppose it aren't you giving a political weapon to the president to just one agenda GOP vice -- -- you guys your just defending and protecting.
The last time we tried this was the Alternative Minimum Tax which is targeted at about a 150.
Taxpayers who -- no tax.
Strangely enough over the years that tax group to now include up to thirty million middle class taxpayers thirty million people including many middle class taxpayers.
This is a Trojan horse.
This is not just targeted at the very rich.
And you know what Greg what we also need to do is look at why is it that half of the households in America pays zero income tax -- so we need some real tax reform.
This is -- -- this is this is again.
You know when he introduced -- the Buffett rule here's what the president said about a quote.
That basic principle of fairness if applied -- -- tax code couldn't raise enough money.
To stabilize our debt and deficits.
For the next year of course senator his own Treasury Department says it's only gonna -- less than five billion a year.
And when you do the calculations that comes out to less than 1%.
Of our current.
Budget deficit which is one point two trillion do you think the president.
Is deliberately dean deceptive.
Exaggerating how would you describe it.
-- kindest thing I can say is he's overstating the case and I would probably -- so the Treasury Secretary is right it is a drop in the bucket.
But why would you engage in this sort of divisive rhetoric.
At a time when we do have a serious problem.
Part of that problem is spending.
And -- and the other part is trying to get the private sector to grow this actually does nothing to stop the spending it encourages it and it discourages.
Investment from the private sector job creation so it's a bad ideal I think most people once they understand that context they'll agree without.
When the president sites fairness he continues to make mention of individuals.
Who are rich to pay a lower tax rate in the middle class we looked it up.
-- -- data shows middle class pays an average of 15%.
While the rich pay an average of 264%.
On their tax rates for the federal government.
Deceptive data being used by the president.
Well I think you can it's complicated -- -- -- those facts would suggest many wealthy people paid capital gains tax.
But the truth it -- just 15% rate right now.
On a long term investments.
But the fact of the matter is the very wealthy can hire the army of lawyers and accountants to help them circumvent this help them defer this tax.
And a lot of -- small business people who pay flow through income on an individual tax return will not have those resources to do and then they will bear the brunt of this tax.
-- -- look like it's gonna pass senator John Cornyn thank you very much for speaking with us thank you very much.