Sen. Bernie SandersBURLINGTON, Vt. -
Sen. Bernie Sanders is
supporting a push for the so-called Buffett rule.
That's the tax reform
proposal named after billionaire Warren Buffett. The idea is to make sure the
rich don't pay a lower effective tax rate than the middle class. That can
happen because many wealthy people derive much of their income through
investments in the stock market, which are taxed at a lower rate than income
earned working a job.
"This country has a
huge deficit. We need to put money into education infrastructure. So to
continue a policy which allows the wealthiest people to do phenomenally well
while their tax rates are very, very low and we're trying to deal with deficit
reduction, makes no sense at all," said Sanders, I-Vermont.
But critics say the
Buffett rule is nothing more than an election year gimmick. It is only expected
to generate about $47 billion in new revenue. Opponents say that will do little
to reduce the budget deficit. Instead they say the new tax will likely just
result in wealthy investors avoiding the taxes by realizing fewer capital
gains.
