Obama to propose new tax rate for millionaires
The White House will propose a new tax rate for people earning more than $1 million a year to ensure that they pay at least the same percentage of their earnings in taxes as middle-income Americans, administration and White House officials told CNN on Sunday.
Called the Buffett Rule, the proposal will be part of a comprehensive deficit reduction plan that President Barack Obama will unveil on Monday, according to a senior administration official and White House sources who spoke on condition of not being identified. The information was first reported by The New York Times.
The plan’s name refers to billionaire Warren Buffett, who has complained that wealthy Americans pay less than their fair share in taxes under the current tax code.
In particular, Buffett says, wealthy taxpayers who generate significant investment income pay the lower capital gains rate on that money. Obama’s proposal would be designed to prevent a resulting imbalance.