Barack Obama is to propose a "Buffett Tax" on people earning over $1m (£630,000) a year as part of his deficit recommendations to Congress on Monday.
The President is hoping the millionaires tax will connect with voters
The move is seen as a populist vote winner ahead of the 2012 elections and critics say it will not have much impact on the $3trn (£1.9trn) deficit savings being sought over the next ten years.
The proposal is called the "Buffett Tax" after US billionaire investor Warren Buffett, who wrote earlier this year that rich people like him often pay less in tax than those who work for them due to loopholes in the tax code, and can afford to pay more.
The US President has repeatedly called on Congress to close tax loopholes for "millionaires and billionaires" as he seeks to differentiate himself from the Republicans before next year's election.
Warren Buffett (L) is given the 2010 Medal of Freedom by President Obama
The "Buffett Tax" could help energise President Obama's supporter base by highlighting a feature of the US tax code that allows the rich to pay lower rates of tax than less wealthy Americans because much of their income comes from investments.
The president is expected to outline steps to raise tax revenue as well as cuts in government spending in Monday's proposals.
These could include reforms of the government's healthcare programs aimed at the elderly and those on low incomes.
Mr Obama is not expected to make any changes to the social security retirement plan.
The president's opinion poll ratings have fallen over his perceived handling of the economy and he will want to counter Republican claims he is a 'tax-and-spend' liberal as he campaigns for re-election next year.
Republicans, who control the US House of Representatives, have said that they will not agree to tax hikes.
Mr Obama's millionaire tax proposal comes as British Chancellor George Osborne headed in the opposite direction ordering a review of the controversial higher band 50p tax, saying "inefficient" taxes are pointless
The move is seen as a populist vote winner ahead of the 2012 elections and critics say it will not have much impact on the $3trn (£1.9trn) deficit savings being sought over the next ten years.
The proposal is called the "Buffett Tax" after US billionaire investor Warren Buffett, who wrote earlier this year that rich people like him often pay less in tax than those who work for them due to loopholes in the tax code, and can afford to pay more.
The US President has repeatedly called on Congress to close tax loopholes for "millionaires and billionaires" as he seeks to differentiate himself from the Republicans before next year's election.
Warren Buffett (L) is given the 2010 Medal of Freedom by President Obama
The "Buffett Tax" could help energise President Obama's supporter base by highlighting a feature of the US tax code that allows the rich to pay lower rates of tax than less wealthy Americans because much of their income comes from investments.
The president is expected to outline steps to raise tax revenue as well as cuts in government spending in Monday's proposals.
These could include reforms of the government's healthcare programs aimed at the elderly and those on low incomes.
Mr Obama is not expected to make any changes to the social security retirement plan.
The president's opinion poll ratings have fallen over his perceived handling of the economy and he will want to counter Republican claims he is a 'tax-and-spend' liberal as he campaigns for re-election next year.
Republicans, who control the US House of Representatives, have said that they will not agree to tax hikes.
Mr Obama's millionaire tax proposal comes as British Chancellor George Osborne headed in the opposite direction ordering a review of the controversial higher band 50p tax, saying "inefficient" taxes are pointless
Source
2 comments:
One reason why Obama scares me is that he is proposing something new almost every day. Debt, debt and more debt!
The hope and change candy-date BHO has turned out to be a capricious despot of the Hegelian persuasion. He uses the concept of thesis, antithesis = synthesis at whim. The Prez is pitting all sides against the middle. Call him the great divider... What Barry wants, Barry wants to get...
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