Business Ethics Project 6

Topics: Tax, Progressive tax, Taxation Pages: 11 (2740 words) Published: April 29, 2015


Business Ethics Project:
“The Ethics of Taxation Trilogy: Part II –
The Buffett Rule and The Ethics of a Millionaire’s Tax”
Course: Investments
Instructor: William Callahan

Summary
Часть Алишера
Problem
This problem was discovered by famous investor and billionaire – Warren Buffet. In his situation, he informed us the main points of “millionaire’s tax”. He explained us, that in 2010 he paid tax rate of 17.4%, when other peoples who worked in office with less revenue paid much higher tax rate (between 33% and 41%). These two situations about taxation had such different result. In reason that, first side – investors, people with high profit, while another people with high efficient rate – people, with stable wage. The main reason of this problem is that all investments gains had low effective tax rate, than people who worked in the office. For example, if your investments had been more than one year, you also have low percent of effective tax rate. President Obama supports Warren Buffer in order to raise revenues and simplify the taxation rate for everybody, especially for people who lived here. According Moscow News, where Barak Obama two years talking about the need to recovery justice in the efficient rate of tax system for millionaire, but all attempts to raise taxes, especially for large businesses and wealthy individuals have been ignored. Our group strongly supports famous investor and billionaire Warren Buffer, to pay the same tax rate, like people who worked in the office. As we know, according Moscow News ( Russian Version), mostly millionaire pays less percent of tax, in serious reason: They invest in something or charity. We support, that charity – is a good idea in our life. We want to add, that not only millionaire invest their money in charity, everybody must invest to improve our world. In this reason people who worked in office pay the higher tax rate. Why? If their also invest in charity? Each government, must to know not depend millionaire people or not, but everybody must pay the same tax rate. The main reason, that government explain us, that everybody equal before the law. Every millionaire should feel responsible to his each million. If a person knows how to use money, do millions, no matter what the tax will be in the future, he will spend his money in a right way. If we compare middle class and millionaire class, everybody can say , that middle class should not be allowed to pay the higher tax efficient rate, than millionaire class, which pay much less. Our group support good idea from billionaire Warren Buffer, and we think it will be ethical if government decide this decision according law. In reason, that everybody must be equal. As we know each problem has pluses and minuses. This situation also have “+” and “-” for government. Government should explain for millionaires, that their taxation will go in right way (charity and etc), only in this way people will be agree to pay much higher percent of tax.

Taxation as a punishment for high income
President Obama made a proposal named “Buffer Rule” for a country to grow and move forward, to increase revenues and decrease budget deficit, and what is really important, is to improve federal tax code. The main idea of this rule is to increase taxes for people who earn more than $1,000,000 annually. Probably, some of these millionaires may try to evade paying taxes by using different tax schemes and it is, at least, unethical from the point of different virtue ethics, such as deontology and contemporary virtue ethics. But, is this enough to apply the “Buffett Rule” on each one who earns more than $1 million? And what about those people,who earn $999,000? Even though, that most of millionaires pay taxes, because United States have progressive rates, it is not rational to pay the same amount (or even lover amount, like Warren Buffet) of taxes as lower or middle class. President Obama wants that people to pay 30%...

References: The White House Official Website. Retrieved on September 28, 2014 from
http://www.whitehouse.gov/economy/buffett-rule
CNBC. Retrieved on September 28, 2014 from
http://www.cnbc.com/id/49939444#.
Part 1: “The Buffett Rule”
In September, 2011, President Obama announced a proposal which claimed that by 2013, a federal “millionaire’s tax” would be implemented
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