January 24, 2012 12:02 PM

Most Americans agree with "Buffett rule" concept, poll shows

By
Stephanie Condon
Topics
Polling
Capital Gains and Dividends Should be Taxedâ?¦ (Credit: CBS)

CBS News Poll analysis by the CBS News Polling Unit: Sarah Dutton, Jennifer De Pinto, Fred Backus and Anthony Salvanto.

The government taxes income earned through investments at a lower tax rate income earned from working, but half of Americans think that should change, according to a new CBS News/New York Times poll.

Currently, most investment, or unearned, income from capital gains and dividends is typically taxed at a maximum rate of 15 percent rate. That's how Republican presidential candidate Mitt Romney ended up paying a rate of about 14.5 percent on the $42.6 million he made over the past two years. Wage earners, by comparison, are taxed on a sliding scale that now tops out at 35 percent.

However, 52 percent of Americans say that capital gains and dividends should be taxed at the same rate as income earned from work because the current policy increases the federal deficit and is unfair to people who don't have money to invest, according to the poll. Thirty-six percent approve of the current policy of taxing capital gains at a lower rate because it encourages investment and helps the economy.

In his State of the Union address tonight, President Obama will appeal to those Americans who think investment income should be taxed more by laying out a more detailed plan for what he's called the "Buffett rule."

Named for billionaire investor Warren Buffett, the "Buffett rule" the president is calling for would compel those making $1 million or more a year to pay a rate no lower than what middle income Americans pay. Buffett last year decried the fact that he paid a lower tax rate than some middle-income earners in his office, such as his secretary. To drive home the president's point tonight, Buffett's secretary, Debbie Bosanek, will be in First Lady Michelle Obama's box.

While most Americans would seem to back the Buffett rule, the poll shows there are partisan differences on this question. Fifty-five percent of Republicans approve of the current policy, while 66 percent of Democrats say capital gains should be taxed at the same rate as employment income. Among independents, 54 percent say capital gains should be taxed at the same rate as work income.

Americans express some concern about whether all are paying their fair share of income taxes.

More than half - 55 percent - think upper income Americans pay less than their fair share of taxes. Only a quarter says higher income people pay the right amount in taxes.

There are partisan differences here, too. Seventy percent of Democrats think those with upper incomes pay less than their fair share of income taxes, but that percentage drops to 37 percent among Republicans.

When asked about their own federal income taxes, just over half of Americans say they pay about the right amount, but a sizeable number - 40 percent - feel they pay more than their fair share.

Opinions are impacted by household income. Thirty-two percent of Americans earning less than $50,000 a year feel they pay more than their fair share of taxes, but that number increases along with income, reaching 48 percent among those earning $100,000 a year or more.

Read the complete poll (PDF)

This poll was conducted by telephone from January 20-23, 2012 among 1,185 adults nationwide. Phone numbers were dialed from samples of both standard land-line and cell phones. The error due to sampling for results based on the entire sample could be plus or minus three percentage points. The error for subgroups may be higher. This poll release conforms to the Standards of Disclosure of the National Council on Public Polls.


Add a Comment See all 157 Comments
by The_General_1968 February 17, 2012 2:38 PM EST
As long as our country is held hostage by the fed, a third party profit making banking cartel, we will continue to spiral deeper and deeper into debt and eventual collapse. We need to have a leader in the white house and a congress that is not corrupt and is accountable to the American people, and willing to put an end to this criminal enterprise.

Here's an easy way to make an educated choice about who to vote for in November:

Google and watch these youtube documentaries:
"Power of Nightmares" - foreign policy truth BBC documentary
"Money as Debt" - clearly explains who controls the money and power
Google "Michael Scheuer Iran" - ex-CIA head Bin Laden unit explains our foreign policy and fear of Iran
Google and watch "Predictions in Due Time"
Then, with your new knowledge, cast your meaningful vote for the man who has the track record to back up his promises.
Reply to this comment
by Term_Limits_Please February 14, 2012 1:50 AM EST
Im going to quit this posting stuff...i suggest the rest of you do the same. If you cant get a man to admit 2 + 2 = 4. You can't get him to admit to anything.

I'll just turn into a Republican and mirror there beliefs which are:

I know my roads and bridges are crap, and they should be fixed or replace...but lord almighty...why should i have to pay for that.

War..oh yea..lets go...we be big and bad...lets have war...but I sure shouldn't have to pay for that.

Taxes...no way...all taxes are bad...raise taxes and you'll see the end of jobs, the end of blue skys, the sun won't come out, there won't be air to breath, no children will be born, the sky will fall...what ever you do for lords sake...puhleeez...no taxes.

You do that and we might see the day where we actually balanced the budget...we cant have higher tax rates like when Clinton was president....

Run..run .....the world will end....

Freaking pansies....
Reply to this comment
by mizRicki February 9, 2012 11:19 AM EST
If the "Buffet" rule is so great, why is Buffett taking measures to keep from paying additional taxes on his investments? I'm curious to know if the question posed stated that capital gains taxes are additional taxes on money that taxes have already been paid in the form of "income tax" and then invested. Basically, you're paying taxes TWICE. I doubt the pollsters relayed that information to the respondent.
Reply to this comment
by antoniof123 February 12, 2012 3:35 PM EST
This is there excuess why isn't he doing it now.

He doesn't have to this is a cop out and every one knows it the time will come when we get tired of the right wing dance and things will shift I have seen it before it is coming.
by occupy_cbs February 9, 2012 2:20 AM EST
RobAla: "One would have to either Dumb, Disingenuous, Delusional or Diabolical to belive that..."



.................continuing the very failed GOP economic policies of the past 30+ years will lead to anything but higher debt!


Tax Cuts And 'Starving The Beast'
by Bruce Bartlett

The most pernicious fiscal doctrine in history

'Starve The Beast' became a substitute for serious budget control efforts, reduced the political cost of deficits, encouraged fiscally irresponsible tax cutting and ultimately made both spending and deficits larger.

http://www.forbes.com/2010/05/06/tax-cuts-republicans-starve-the-beast-columnists-bruce-bartlett.html
Reply to this comment
by js2212 February 6, 2012 6:39 PM EST
by magicbymark January 31, 2012 5:16 PM EST
"I feel fortunate to have capital gains to pay taxes on and would gladly pay 25% tax on them"

You are either a liar or just plain stupid. If you would gladly pay more in taxes than required, then why don't you? No one's holding a gun to your head saying "You better not pay one penny more than 15%!"
Reply to this comment
by js2212 February 6, 2012 6:29 PM EST
52% - I see. So this country's lack of education is worse than I thought.

Wages are not the same as investing. Investing is good. But it carries risk. That's why it is taxed less. To offset the negative of risk, they make it more attractive by letting you keep more of it. The libs don't discuss the fact that risk means maybe you don't get any return and instead lose it all.

Wages carry some risk, like if you screw up and get fired or if you get laid off because your company can't afford your health care under Obama's plan. But it's fairly low risk. These facts are just a little too complex for the majority of Americans to grasp. Probably because they are either stupid or just out of their depth in today's world.

Most people believe they have a right to receive something from someone - be it wages or a hand out.
Reply to this comment
by Term_Limits_Please February 14, 2012 1:27 AM EST
WRONG !! The capital gains and dividend tax rates were not lowered because of said risk. How much risk is there for you to invest in Proctor Gamble? A mutual fund of consumer products...it goes, up or down very little. Long term, safer than owning a home. These tax rates were lowered with the idea that it would encourage more investment...and that would translate into more jobs. But the evidence suggest that the desired result doesn't occur from the lower tax rates.

So if there is no benefit to give a group a lower tax rate over other income earners, why would you continue to do it?

Need i say the appropriate answer is: You shouldn't.
by aldrich617 February 4, 2012 1:56 PM EST
Wake up to the new zero sum investment game! The total sum of the
world economic pie is only just barely growing now and will soon
begin to shrink in absolute terms and there is nothing that anybody
can really do about it. This means that if your investment risk pays off and you make money, that someone else's risk is of necessity losing money. This is especially true in technology, whose main mission is to increase efficiency (ie. kill jobs). Only recently there were millions of people employed as manufacturing workers, secretaries, bank tellers, travel agents, book and music store clerks.....and technology has thrown them out on the streets and replaced their jobs with.....NOTHING.

Investment is rapidly becoming a morally ambiguous practice, often producing disastrous results even when it is successful, and therefore it deserves to lose its current favored tax status. Perhaps a full discussion of "Tax Credits for the Purchase of American-Made Goods" is finally in order as it has the potential of finding ways of bringing back many of the US jobs given away abroad during the "Lost Decade" as a result of poor policy choices.
Reply to this comment
by John_Steinsvold February 4, 2012 2:32 AM EST
An Alternative to Capitalism (if the people knew about it, they would demand it)

Several decades ago, Margaret Thatcher claimed: "There is no alternative". She was referring to capitalism. Today, this negative attitude still persists.

I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to an essay titled: "Home of the Brave?" which was published by the Athenaeum Library of Philosophy:

http://evans-experientialism.freewebspace.com/steinsvold.htm

John Steinsvold

"Insanity is doing the same thing over and over and expecting a different result."
~ Albert Einstein
Reply to this comment
by truthskr17 February 2, 2012 9:07 PM EST
The whole premise is absurd. Investing comes with risk. If you invest your money (which was already taxed) you might lose your principal. If your investment is good, it will most likely generate jobs and income for others. The percentage that favor taxing investment income identically to other income are as misguided as those that simply want to soak the rich more. It never results in increased revenue to the US treasury. Turn your way-back machine to 1990. Remember the luxury tax? It cost so many jobs and decreased tax revenue for the government so badly that is was repealed in 1993. Mr. Obama is calling for more of such policies. Good grief.
Reply to this comment
by Term_Limits_Please February 14, 2012 1:32 AM EST
What doesn't come with risk? You can get up and work for the same company for forty years, and if goes bankrupt you can lose your pension or at least a major portion. Whats more risk adverse than starting a company, and investing your savings and time into that company. These investments create jobs, the investments you speak of...you buying my stock or me buying yours hardly creates anything but a broker's commission.

But the bigger question, is why would i or you take that gamble regarding starting a company, hiring employees...when all we have to do is put our money in blue chips and pay a maximum tax of 15%.

See the problem? The effect you create is just the opposite of what your trying to do with the lower rates on capital gains and dividends.
by Isiah1776 February 2, 2012 2:46 AM EST
The 52% that think investment gains should be taxed at the same rate as work income is about the same % of people that don't pay any income tax and probably don't even own a share of stock. Easy for them to say! If they don't want to vote for candidates that are interested in reducing the size of the bloated and ever-growing federal government which would reduce the need for higher taxes, then they need to forfeit their exemptions and credits so that EVERYBODY pays into the huge and grossly wasteful government bureacracy!
Reply to this comment
by MegaProcrastination February 2, 2012 3:49 AM EST
The only way to balance the budget is going to be to do both: increase taxes AND decrease spending. Last time there was a balanced budget the wealthy were paying a ridiculously high percentage of income in taxes. Shoot, even I, someone on the low end of the pay scale, can see that.

Investment income: you take your little monies and hand them over to a broker then sit and wait for money to come in. Then you might pay 15% in taxes, or you might not depending on where the money is invested. Work income: you take your body and toil for at least eight hours a day. Then you pay at least 30% of that to the federal government, another percentage to your state government, another percentage in sales tax, this tax, that tax, etc., etc., etc.

Then there is the whole thing of what's actually going on with that investment capital. Republicans claim it's used to create jobs. I'm pretty sure it looks to most of us like what it's used for is to create jobs in China and bunches of the excess goes to pay multi-million dollar bonuses to executives.

And yes, I do pay income taxes but no, I don't own even a share of stock because I can't afford to gamble my money.
by Dthunderchicken February 12, 2012 10:31 AM EST
by MegaProcrastination February 2, 2012 3:49 AM EST
"Then you pay at least 30% of that to the federal government, "

When you do your taxes this year, compute the rate that you've payed. I'll bet it's MUCH lower than 30%. Mine is. (And a side note, don't believe everything the main stream media puts out. Check for yourself. They're interpretation of the raw facts is often slanted.)
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