Sunday, September 18, 2011

'Buffett Rule' and impact on US economy | Will Buffett rule be a success?

US President Barack Obama is expected to seek a new base tax rate for the wealthy to ensure that millionaires pay at least at the same percentage as middle income taxpayers.

Buffett Rule after Warren Buffett,the billionaire investor who has complained that rich people like him pay a smaller share of their income in federal taxes than middle-class taxpayers.

This Proposal would target the top 0.3 percent of taxpayers, many of whom currently reap huge benefits from lower rates on capital gains and dividends.

Although wages are taxed at rates ranging from 10 percent to 35 percent, investment earnings are taxed at 15 percent which is the main reason behind bring those who are taxed at lesser rate to be taxed in par with normal wage earners.

But chances of getting this approved in congressional approval very less, it could help shape a populist message for Obama and other Democrats heading into the 2012 presidential campaign.