Buffet Rule - Obama Explains
IN his message the US Congress yesterday President Obama said,
This plan lives up to a simple idea: as a Nation, we can live within our means while still making the investments we need to prosper. It follows a balanced approach: asking everyone to do his or her part, so no one has to bear all the burden. And it says that everyone - including millionaires and billionaires—has to pay their fair share.
The Buffett Rule: that people making more than 1 million dollars a year should not pay a smaller share of their income in taxes than middle-class families pay. No household making over 1 million dollars annually should pay a smaller share of its income in taxes than middle-class families pay. As Warren Buffett has pointed out, his effective tax rate is lower than his secretary's. No household making over 1 million dollars annually should pay a smaller share of its income in taxes than middle-class families pay. This rule will be achieved as part of an overall reform that increases the progressivity of the tax code.