The Buffett rule
Everyone knows Warren Buffett, the unassuming Midwesterner whose investing style has created one of the world's most valuable companies and whose financial expertise regularly lands him near the top of "the richest" lists.
He's already known as the Oracle of Omaha. Now he's got a new title: the namesake of the Buffett Rule.
This is a proposal by President Barack Obama and U.S. Senate Democrats to enact a minimum 30 percent tax rate on individuals who earn $1 million or more. The idea was prompted by Buffett's announcement that his tax rate is lower than that of his secretary.
The reason for the tax rate disparity? Most of Buffett's income is from capital gains and qualified dividends that, thanks to the Bush tax cuts, are taxed at rates lower than the ordinary income earned by most taxpayers, including apparently Buffett's secretary.