Politics
Elections 2012: Obama pressing for ‘Buffett rule’
Obama has proposed that people earning at least US$1 million annually, whether in salary or investments, should pay at least 30 percent of their income in taxes. Many wealthy taxpayers earn investment income, which is taxed at 15 percent, allowing them to pay a smaller percentage of their income in taxes. By contrast, the top rate for taxpayers with high incomes derived from wages is 35 percent.
The White House said in a report released ahead of Obama’s speech that the tax proposal would restore fairness to the system, pointing to 22,000 households earning more than US$1 million annually that paid less than 15 percent of their income in income taxes in 2009. Nearly 1,500 of those households paid no federal income taxes, the report said.
Obama economic adviser Jason Furman said the Buffett rule reflected the “most simple, common-sense element of any tax reform.”
Obama was holding three fundraisers near West Palm Beach and Fort Lauderdale. The events were expected to raise at least US$1.7 million. A large rally-style event in Hollywood, Fla., was to include a musical performance by singer John Legend.
Copyright 2012 The Associated Press.
