President Obama is calling his proposal for a new, higher minimum tax rate for those earning more than $1 million a year the "Buffett Rule," according to an article in the New York Times.
This, of course, is a reference to billionaire investor Warren Buffett's public plea to the government to force the rich to pay more taxes as part of a deficit-reduction plan.
Republicans are opposed to raising taxes on the wealthy because they say it will discourage investment, a line of reasoning that Buffett disputed in his op-ed piece in the New York Times last month. Instead, Republicans contend that deficit-reduction programs should come from eliminating some tax breaks and overhauling Medicare, Medicaid and Social Security.
Obama's proposal aims to ensure the rich pay at least the same percentage of their earnings as the middle class. He hasn't said what the new tax rate will be, so it's uncertain how much revenue will be raised. He has said that he wants to eliminate the alternative minimum tax, which was created to make sure that those who claimed many deductions did not avoid paying income tax. Obama's tax overhaul will lower the tax rate for many in the middle class, he claims, while making the rich pick up the slack. The Administration estimates that 0.3 percent of taxpayers will be affected by the "Buffett Rule."
The goal of higher taxes -- on wealthy individuals as well as corporations -- is really to fund the $447-billion job-creation plan Obama has been promoting. What do you think of Obama's tax proposal?
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