Tax Increase on the Rich

One of President Obama's ideas for jump starting the economy is to increase federal taxes on people who make $250,000 or more of yearly income. People have different ideas about this: some people think it's a good idea because they feel like wealthier Americans don't contribute enough while some think it would be better to keep income in private hands. One of the people who supports the first way of thinking is a billionaire named Warren Buffett. Obama would call the tax increase the "Buffett Rule" after him because Buffett is one who believes that it isn't fair that the wealthiest Americans are paying a lower tax than most middle class Americans. Republican Speaker of the House John Boehner takes the other route: he doesn't think raising the taxes on people will help the economy. Instead, he advocates the panel in making spending cuts and entitlement reforms. As the panel meets eventually, a compromise will be attempted between the Republicans and Democrats.