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Obama Wants `Buffett Rule’ Tax

President Barack Obama address all the winners of the "Campus Champions of Change" competition at the beginning of the program.

WASHINGTON (AP) — President Barack Obama is reviving a tax proposal that stands as a symbol of the Democrats’ efforts to portray themselves as champions of economic fairness, though it has no chance of passing Congress.

In his weekly radio and Internet address, Obama calls on Congress to increase taxes on millionaires.

Obama calls the plan the “Buffett Rule” for Warren Buffett, the billionaire investor who says the middle class pays a greater share of its income in taxes than the wealthy.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

  • hightaxes

    What a joke! An editorial in WSJ stated “There goes the Buffett rule. Remember that political gambit, in which billionaire Warren Buffett pretended he was going to pay a much higher tax bill and President Obama pretended that raising rates on millionaires would make a dent in his hemorrhaging budget deficits?

    In one fell swoop Wednesday, Congress’s tax scorekeeper punctured both phony claims. The analysis from the Joint Committee on Taxation also showed less wealthy taxpayers why the Buffett ruse would eventually end up exposing them to higher taxes.

    With Mr. Buffett’s help, Mr. Obama promoted the fairy tale that millionaires pay lower tax rates than their middle-class employees (despite government data showing the opposite). The President then proposed to require all those making more than $1 million in adjusted gross income to pay a minimum of 30% in federal income taxes.

    Senator Sheldon Whitehouse (D., R.I.) quickly drafted legislation to turn this re-election posturing into law. Joint Tax dutifully studied the bill and has delivered the official score: This year, the Buffett rule would increase federal revenues by all of $1.1 billion.

    That’s less than 1 TENTH of 1% of the $1.2 trillion budget deficit Mr. Obama is scheduled to run this year. Through 2022 Joint Tax expects less than $47 billion in total new revenues from the Buffett rule while the government will be adding trillions of dollars to the national debt. Joint Tax even concedes, as it is rarely wont to do, that the rule will affect taxpayer behavior: By raising the effective tax rate on capital gains, the rule will encourage people to realize fewer capital gains.”