Nobody likes taxes, but everyone has to pay them.

Depending on who you are and how much money you make, different tax rates apply. The different rates, corporate taxes, dividends and federal and state income taxes affect all working people in America.

The Democrats are trying to push through a bill that includes a section commonly known as the “Warren Buffett Tax.”

The reason this tax is getting so much publicity is that it calls for a radical change in the tax system. It states that those making a million dollars or more from stocks will have to pay a higher rate.

Millionaires generate profit from their stocks, known as capital gains. The money the government will make from the Warren Buffett tax will fuel the spending in Washington so the economy can make the “jump start” Obama’s been promising for three years.

It certainly sounds like a plan. Who wouldn’t want the millionaires to help out with our suffering economy?

Surely they can do something. Warren Buffet said himself that he should be taxed more. He cited that his 17.4% tax on his income was less than that of most of his employees. That may be because his salary is only around $100,000.

All that aside, let’s look at what the Democrats really want out of this bill.

It sounds great when the President says he wants to increase taxes for those with lots of money. Sadly, it’s all about the politics. Obama is looking for a quick fix to his downward sliding approval ratings.

Republicans and Democrats alike have concerns about this bill, and it is all too clear that Obama is using this platform as a way to get the voting population to support him.

There is no easy solution to the deficit. There needs to be a combination of measures that are implemented quickly to get our economy back on track. Part of the issue comes from the fact that economy is in such a volatile position, so nothing should be changing too rapidly.

Having a massive tax hike or massive spending cuts could throw the economy wildly out of control. We need a long term comprehensive plan to be set in place.

As far as the deficit goes, most Republicans are looking toward spending cuts as opposed to tax hikes. This would help to decrease the deficit in the long run. Of course, we still need programs like Social Security, Medicare and high quality education. We certainly can’t stop spending altogether on vital projects.

There are many programs that Republicans see as unnecessary spending. However, lawmakers are wary of cutting spending, especially if it involves their own project.  Leaders of these programs insist that their spending is essential.

Everyone has heard this word and we keep bringing it up in this blog. Compromise. Obama needs to reduce the extreme nature of his Warren Buffett Tax. Republican leaders like Speaker of the House John Boehner need to allow for tax reforms.

It is clear that Republicans are not going to allow this bill to pass in Congress. Obama has made it clear that he will veto anything that doesn’t include a tax hike for the wealthier class. Once again, the parties are at a standstill. With the election coming up, neither party will want to be seen buckling under pressure.

That attitude certainly won’t help the U.S. economy. Taxpayers need to see government be fiscally responsible. What we need, and soon, is a plan that includes both tax hikes on the capital gains for the wealthy and massive spending cuts. This plan has to look to the future, not only until the 2012 elections.