Obama Proposes to Call “Reagan Rule” to His Plan to Raise Taxes on the Rich

U.S. President Barack Obama today proposed to call “Reagan rule” to his initiative to raise taxes on the rich to pay at least the same rate as the average citizen, a plan that considers a matter of ” justice “to ensure economic growth.

Obama has reiterated its call on Congress to pass this tax initiative, one of the emblems of his campaign for the middle class in order to get re-elected in November.

The proposal is known as the “rule Buffett”, but today in an appearance at the White House Obama recalled a speech by Ronald Reagan in the Republican president that advocated something very similar to what he calls now, so he offered baptize the initiative as “Reagan rule”.

“I am the first president to talk about this idea that everyone has to do their part,” said Obama in suggesting that Reagan (1981-1989), died in 2004, would support his proposal to raise taxes on millionaires .

What Reagan called “the same thing we are asking ourselves: a return to basic fairness and responsibility,” he underlined.

Obama has said that raising taxes on millionaires “takes us in the right direction, toward greater justice and growth.”

The initiative is to raise taxes on incomes over one million dollars annually to 30 percent and adopted the name of billionaire investor Warren Buffett, who has publicly stated that it is unfair that his secretary pays a higher tax rate that he .

That plan will be voted on Monday in the Senate, controlled by Democrats, but has no chance of being passed by the House of Representatives, where the majority Republicans who strongly oppose raising taxes on large fortunes.

“We talked about the fundamental choice we face as a country” to establish “an economy that values ​​hard work and responsibility,” where “everyone plays by the same rules,” Obama repeated.

United States has “serious needs” if you want to continue growing as economy and “we can not afford to keep spending more money on tax cuts for wealthy Americans who do not need and that not even asked,” stressed the president.

For Obama, his plan is not just a way to redistribute wealth, but a necessity for the economy to grow and reduce in part the large public deficit.

Democrats are committed to this initiative as one of the measures to reduce the large public deficit and increase investment in education, research and health.

For the Republicans, including presidential hopeful Mitt Romney’s candidacy and Obama’s likely opponent, propose a cut in public spending and government assistance programs and as an alternative to reduce the deficit.

Indeed, Romney has been criticized because, despite his millions in income, from investments and capital income, pays about 15 percent in taxes, a lower rate than the average citizen.

It was during the administration of Republican George W. Bush (2001-2009) when significantly lowered tax rates that apply to millionaires in a country where wage income is taxed at a rate higher than that applied to capital.