Whitehouse to introduce bill for “Warren Buffet rule”
Following up on President Obama’s State of the Union address this week, Senator Sheldon Whitehouse next week plans to introduce legislation intended to ensure than millionaires are taxed at a rate of no less than 30 percent. The president called this as the “Buffet rule,” a reference to super-investor Warren Buffet.
Whitehouse’s office says:
Senator Whitehouse’s Paying a Fair Share Act would codify that proposal, bulwarking the system against gimmickry and abuse.
The Paying a Fair Share Act would:
- Ensure that millionaires and billionaires pay at least a 30% effective tax rate;
- Apply only to taxpayers with income over $1 million – including capital gains and dividends;
- Require those taxpayers to calculate their effective tax rate under the regular system and pay the higher of their regular rate or 30%;
- Preserve the incentive for charitable giving;
- Reduce the deficit by billions of dollars over the next decade [awaiting Joint Committee on Taxation score].