President Obama plans to roll out his new tax-the-rich proposal on Monday and he's calling it the "Buffett Rule." Named after Warren Buffett, the financial whiz who argues that the mega-rich don't pay enough in taxes, the plan will include a new minimum tax rate for Americans earning $1 million a year or more. Obama's plan has little chance of getting past Republican opposition in Congress, but will create a sharp distinction between Democrats and Republicans for his re-election bid next year, the New York Times reports.
Obama will reveal the details Monday, but he'll probably seek to replace the "alternative minimum tax." The AMT was forged decades ago to ensure that America's wealthiest taxpayers paid a minimum tax despite deductions, but it ended up applying to millions of upper-middle-class Americans as well. Also at issue is the relatively low 15% tax rate on capital gains, dividends, and "carried interest" accrued by wealthy investors. Ending tax breaks for the richest 0.3% of Americans would allow for lower rates for everyday wage-earners, Obama says. (Read more President Obama stories.)