Investors from around the world are in favor of the “Buffett Rule” in Obama’s American Jobs Act, which will increase taxes for those who earn more than 1 million or more annually. Obama has proposed this tax increase in his plan to reduce the deficit that the country currently faces.
One of the poll respondents from Germany, Henry Littig, CEO of Henry Littig Global Investments AG, agreed with the proposed tax increase by saying, “”Higher tax payments could help to avoid or delay potential social disturbances and in addition create some kind of a general solidarity.”
The Bloomberg Global Poll, held every quarter, was conducted among 1031 traders, analysts and investors found 63 percent of respondents in favor of the Rule, and 32 percent against it.
The ‘Buffett Rule’, as coined by the President, came into being after a column was written by Warren Buffett in the New York Times, stating that it was wrong that he pays taxes at a lower rate as opposed to his secretary. Hence Obama feels strongly making everyone pay the same taxes is ‘just the right thing to do’, and which has been supported by other leading political figures such as Bill Clinton, in saying that the ‘rich’ have had it easy for a long time now.
While most global investors supported the Buffett Rule by a large margin, support for the tax increase was not accepted by poll respondents in the United States since more than half the respondents were against the Buffett Rule. They side with the Republicans, and according to one respondent, the problem lies with spending and entitlements, and not tax cuts.