Well, this won’t make President Obama’s critics happy.
On Monday, the President will propose a new “Buffett Tax” on those making $1 million a year or more, Jackie Calmes of the New York Times reports.
The tax will be a sort of alternative-minimum tax that ensures that the nation’s highest earners, like Warren Buffett, pay a similar percentage of their incomes in tax as middle-class people do.
In much-discussed Op-Ed in the New York Times earlier this summer, Buffett complained that he only paid 17% of his income in tax while his secretary paid 36%.
The details as to how this proposed tax will be calculated have yet to be decided.
The Republicans will no doubt go insane at the proposal, arguing that it will somehow “discourage investment.”
Actually, if it’s constructed well–levied on incomes rather capital gains or dividends–it should actually encourage investment. Instead of taking huge salaries, powerful executives and business owners will be encouraged to reinvest the money in their companies instead.
The tax would hit only 0.3% of taxpayers, or fewer than 145,000, the NYT says. The Administration wants it to replace the current Alternative Minimum Tax, which is now hammering the middle class.
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