Obama to Unveil Tax-the-Rich Plan Monday

The 'Buffet Rule' create new minimum rate for the wealthy
By Neal Colgrass,  Newser Staff
Posted Sep 17, 2011 5:41 PM CDT

(Newser) – 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.

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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.)

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