Buffett Rule
Encyclopedia
The Buffett Rule is a tax plan proposed by President Barack Obama
in 2011 to alleviate income inequality in the United States
between the top 1%
of Americans and the remaining 99% of Americans, due to the disproportionate income growth in the 1% group as compared to the 99% group. The tax plan would apply to individuals earning more than $1 million per year; this comprised the top 450,000 of Americans by income when the rule was proposed .
The plan is named after Warren Buffett
, who publicly stated in early 2011 that he disagreed with the rich paying less in federal taxes, as a portion of income, than the middle class, and has voiced support for increased taxes on the wealthy. It would implement a higher minimum tax rate for taxpayers in the highest income bracket, to ensure that they do not pay a lower percentage of income in taxes than less-affluent Americans.
(R
–Wis.
) criticized the new tax provision, calling it class warfare
and arguing that it would negatively impact job creation and investment. Senate Minority Leader Mitch McConnell
(R
–Ken.
) said the conditions of the U.S. economy were ill-disposed to raising taxes.
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
in 2011 to alleviate income inequality in the United States
Income inequality in the United States
Income inequality in the United States of America refers to the extent to which income is distributed in an uneven manner in the US. Data from the United States Department of Commerce, CBO, and Internal Revenue Service indicate that income inequality among households has been increasing...
between the top 1%
The One Percent
The One Percent is a 2006 documentary about the growing wealth gap between America's wealthy elite compared to the overall citizenry. It was created by Jamie Johnson, an heir to the Johnson & Johnson fortune, and produced by Jamie Johnson and Nick Kurzon...
of Americans and the remaining 99% of Americans, due to the disproportionate income growth in the 1% group as compared to the 99% group. The tax plan would apply to individuals earning more than $1 million per year; this comprised the top 450,000 of Americans by income when the rule was proposed .
The plan is named after Warren Buffett
Warren Buffett
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is...
, who publicly stated in early 2011 that he disagreed with the rich paying less in federal taxes, as a portion of income, than the middle class, and has voiced support for increased taxes on the wealthy. It would implement a higher minimum tax rate for taxpayers in the highest income bracket, to ensure that they do not pay a lower percentage of income in taxes than less-affluent Americans.
Reaction
Representative Paul RyanPaul Ryan
Paul Ryan may refer to:* Paul Ryan , member of the U.S. House of Representatives* Paul Ryan , music agent for The Agency, former Cradle of Filth guitarist* Paul Ryan , comics artist...
(R
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
–Wis.
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
) criticized the new tax provision, calling it class warfare
Class conflict
Class conflict is the tension or antagonism which exists in society due to competing socioeconomic interests between people of different classes....
and arguing that it would negatively impact job creation and investment. Senate Minority Leader Mitch McConnell
Mitch McConnell
Addison Mitchell "Mitch" McConnell, Jr. is the senior United States Senator from Kentucky and the Republican Minority Leader.- Early life, education, and military service :...
(R
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
–Ken.
Kentucky
The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth...
) said the conditions of the U.S. economy were ill-disposed to raising taxes.