Warren, Doug, and Joe

You may have heard that President Obama has proposed the Buffet Rule.  This would be anew tax law that would require millionaires and billionaires to pay an effective tax rate at least equal to middle income wage earners.  It is called Buffet Rule because billionaire investor Warren Buffet noted that he pays a lower effective tax rate than his secretary.  He believes tax rates on the richest people in the US should be higher.  I also believe they should be higher.  Total tax revenue as a percentage of GDP is at a 50 year low while at the same time the country is fighting two unfunded wars and suffering massive layoffs of workers because of the deepest recession since the Great Depression.

Yesterday at an event with President Obama, A former Google executive, Doug Edwards, asked President Obama to raise his taxes.  This was his way of saying taxes on the richest in our society should be raised.  In response to Warren Buffet and now Doug Edwards, I have heard numerous people, including Joe Scarborough today on Morning Joe, suggest these two should just write a check out to the IRS and mail it in.  Obviously Joe and like minded people are missing the point, but I’ll play along for fun.  Let’s go!

Two unfunded wars in the Middle East and you believe it’s in our national interest to be there, how about you write out a check to the Department of Defense.  They could use a little to offset the $10 billion being spent a month.  And you know, since you are so supportive of the conflicts, put your money where you mouth is.  While your at it sign up for military service yourself, or at least ask that the draft be reinstituted. 

Feel like the oil companies should keep their subsidies because bolstering US oil production is so important, well you should just send Exxon a check to show your commitment.

If your number one national concern is the deficit, then skip your tax refund.  When you fill out your tax return for 2011, just use zero exemptions and take no deductions.  Flat out skip the 1040 Schedule A and the effort to itemize your deductions.  Just put zeros in all the deduction boxes.  This is the most patriotic way to show how serious you are on a personal level about deficit reduction.

None of this really makes sense does it?  One nation under God, indivisible….  We are one nation, and we rise and fall together.   We have to get some macro things right in our country over both the short-term and long-term.  The country does need to be on more solid financial footing for the good of our whole society.  We can not get there simply through spending cuts alone.  Remember, tax revenue as a percentage of GDP is at a 50 year low.  We are not just experiencing a spending thing; we are also experiencing a revenue thing.  This is what both Warren Buffet and Doug Edwards understand, but can’t solve alone by sending their checks to the IRS.