Buffett Rule: What It Means, Criticism, FAQs – Investopedia
“Key Takeaways
- The Buffett Rule tax plan proposed a 30% minimum tax on people making more than $1 million a year.
- The rule was part of President Barack Obama’s 2011 tax proposal.
- It was named after Warren Buffett, who criticized a tax system that allowed him to pay a lower tax rate than his secretary.
- The Buffett Rule contends that the tax system is not fair because it puts a greater proportional tax burden on wages than it does on investment income.
- The goal of the Buffett Rule is to bring about tax relief for the middle class and those whose earnings are less.
- Critics state that the Buffett Rule is effectively a capital gains tax rate hike that would hurt business growth.”