econscius

Obama’s Buffett Rule AMT Math Off by Factor of 289, or $1.4 Trillion/Year

In Federal Deficit, Income Tax Rates, Warren Buffett on April 11, 2012 at 5:50 pm

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President Obama claimed the new Alternative Minimum Tax he calls the “Buffett Rule” would eliminate the deficit. [1]  He is off by a factor of 289, or $1.4 Trillion per year.

The Obama AMT (“Buffett Rule”) would raise about $4.7 billion per year [1].

The Obama deficit in the past 365 days was $1,359.1 billion [2].

Just yesterday, White House officials conceded the Buffett Rule would only produce $47 billion over ten years in additional tax revenue for the government. That amounts to just 0.6 percent of the $7 trillion in spending projected for that period. [1]

Whatever the merits of demerits of the proposal, the claim was wildly false.  Personally, I’d recommend cutting spending.  Eliminating Obama Administration give-aways to for-profit businesses under the guise of ‘green’ initiatives would reduce more than the Obama AMT would.

[1] http://www.cbsnews.com/8301-503544_162-57411687-503544/white-house-pushes-buffett-rule-on-taxes/

[2] Using search range of April 11, 2011 ($14,267,760,539,191.80) to April 10, 2012 ($15,626,832,596,694.90) at http://www.treasurydirect.gov/NP/NPGateway

Pictures from Wikipedia Commons.

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