President Obama wants millionaires to pay higher tax levels and despite potential tax loopholes the President wants those taxes to be at least 30% of a millionaires earned income.
If that number sounds familiar it may be because it has come to be known as the Buffett rule after billionaire Warren Buffett proposed that anyone making more than $1 million per year should be taxed at at least 30% of their overall pay. Buffett proposed that payment structure after his own secretary Debbie Bosanek pointed out that the billionaire is taxed in a lower bracket then her.
In his speech Obama noted:
"Tax reform should follow the Buffett rule," and "If you make more than $1 million a year, you should not pay less than 30% in taxes."Further attacking the low tax structure of many millionaires Obama attacked the Washington establishment that has made those payment so low by stating that Washington should stop "subsidizing millionaires," and that tax subsidies and deductions should be stopped for anyone making $1 million or more per year.
The President then shifted his attention to those Americans making under $250,000 per year:
"On the other hand, if you make under $250,000 a year, like 98% of American families, your taxes shouldn't go up," he added. "Now, you can call this class warfare all you want. But asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense."That part of his speech was part of a greater State of the Union message that focused on building a long lasting economy that returns manufacturing jobs to the United States by giving incentives to company's that bring jobs back to the U.S.
What do you think of Obama's message to millionaires and the working class?