The ‘Buffet Rule’ Revealed

Writing the new “Buffett rule” proposed by President Barack Obama to snare more tax revenue from millionaires will prove to be logistically and mathematically difficult.

The concept, named for billionaire investor Warren Buffett, would require Americans earning more than $1 million a year to pay at least the same tax rate as middle-class households. Such a rule would be problematical to craft or ineffectual because higher earners aren’t the only taxpayers benefiting from breaks; many middle-income families take advantage of deductions and credits that drive their rates below the 17.4 percent that Buffett pays.

Buffett has said he and other Americans earning more than $1 million a year should pay more in taxes than they currently do. The administration wants to include Buffett’s concept in a broad overhaul of the U.S. tax code. Obama didn’t include specific language in the proposal he released today.

Continue Reading Article Here >>>