Buffett Rule

The Buffett Rule is a tax plan proposed by president Barack Obama in 2011. It would apply to individuals earning more than $1 million per year; this comprised the top 450,000 of Americans by income when the rule was proposed

It is named after Warren Buffett, who publicly stated in early 2011 that he disagreed with the rich paying less in federal taxes than the middle class, and has voiced support for increased taxes on the wealthy. It introduces a higher minimum tax rate to the richest in the US, to ensure that they are taxed at the same rate as the less wealthy.

Reaction

Representative Paul Ryan (R–Wis.) criticized the new tax provision, calling it class warfare and arguing that it would negatively impact job creation and investment.  Senate Minority Leader Mitch McConnell (R–Ken.) said the conditions of the U.S. economy were ill-disposed to raising taxes.