Obama and the "Buffett" Rule

As stated in a previous article, President Obama's Administration has provided details on the Jobs Plan he promised to release after Labor Day. This plan is set to cost around 300 Billion Dollars and seems to be round 2 of where Speaker Boehner and the President ended last time while discussing the debt ceiling. 

Besides the tax cuts that are set to give incentives for businesses to hire within the United States, media outlets are hooked on has been coined the "Buffett" Rule. Obama discussed the situation in which Warren Buffett, A successful investor on Wall Street, pays less taxes that his receptionist does.

Therefore, the Obama Administration proposed that when "Buffett"-like tax situations millionaires get into,  their taxes would default to the middle class tax rate. Thus eliminating the complicated minimum alternative tax as well as changing the concept of a "flat tax," only the flat tax would be for the wealthy income earners. 

In the article, Lampe: Its the Economy Stupid, Mike Lampe had recommended to get rid of the Bush Tax Cuts to the rich and implement a tax break that is more job specific. Although not getting rid of the Bush Tax Cut for the wealthy entirely, this approach sends a message of compromise and the perception that fresh ideas are going through the Oval Office at the White House. 

Although it is quite clear that Obama will not get everything he asks for, it will be interesting to see how the Republicans will respond to this bill. There is already the anti-tax movement of the Republican Party that suggest the government should not tax "job creators."