Billionaire investor Warren Buffet recently argued that rich people are not paying enough taxes and in that spirit President Obama on Monday is expected to roll out the “Buffett Rule” a new tax plan that will create a higher minimum tax rate for American’s who earn more than $1 million.
The plan will like target the “alternative minimum tax” rule which was formed decades ago to ensure that the most wealthy American’s pay a certain tax bracket despite loopholes and deductions, a level that was placed at a measly 15%. The AMT as it is commonly referred to eventually carried over to upper-middle-class Americans.
The President is also expected to target the low 15% tax rate on capital gains, dividends and “carried interest” that has been collected by wealthy investors.
According to President Obama, ending tax breaks for the .03% richest American’s would help pass on lower rates to middle and lower class workers.
The plan is highly unlikely to pass through the Republican controlled Congress but that isn’t the point of the proposal, Obama’s plan is merely a way to show voters that Republican’s don’t have their best interests in mind during a time of unprecedented wealth loss among the middle class in America.
Do you think taxes need to be raised for America’s richest citizens? I’m going to take Buffett’s word on this one as he is a much smarter man than me when it comes to financial accumenship.
