"Buffett rule" refers to that the tax rate of investment income of millionaires should not be lower than the tax rate of ordinary income such as wages. This rule stems from a joke by Warren Buffett, the "god of stocks". As a billionaire, Buffett once pointed out the irrationality of the US tax system with his own tax rate "less than that of his secretaries". Buffett's tax rate is about 15%, while his secretary's tax rate is 30%. Buffett therefore supported the Obama administration to promote tax reform and said he was willing to pay more taxes. According to Buffett's algorithm, his secretary pays twice his tax rate. Buffett believes that the tax system of the United States is unreasonable, and the tax rate of investment income should be raised. According to the current tax law of the United States, the upper limit of the tax rate on ordinary income such as wages is 35%, but the upper limit of the tax rate on capital gains and dividends is only 15%. At present, the marginal tax rate paid by the ordinary middle class in the United States is about 15% or 25%, and the wealthier middle class or the rich class may have to pay 35% of the marginal tax. However, because the preferential tax rate on capital income is not more than 15%, and the preferential tax rate on charitable donations and other policies, many millionaires who mainly rely on investment for profits may bear an effective tax rate that is far lower than that of the middle class. Since 2011, the Obama administration, faced with budget deficits, has been pursuing the so-called "Buffett rule", that is, to impose a 30% income tax on American millionaires with an annual income of more than $1 million, and take it as an important platform for re-election. According to Obama's tax plan, once the "Buffett" rule is implemented, the maximum tax rate may rise to 39.6%. On September 19, 2011, Obama made a speech at the White House, echoing Buffett's proposal, claiming to implement a new minimum tax rate for millionaires, which is part of his efforts to limit spending, increase income and reduce budget deficits. Officials said that the so-called "Buffett Rule" is part of President Obama's long-term plan to reduce the deficit. The purpose of this plan is to ensure that the tax rate of people who earn more than one million dollars a year is roughly the same as that of the middle class. This new tax is called "Buffett tax" by American media. On March 31, 2012, President Obama of the United States, in his weekly weekend routine speech, called on Congress to pass the "Buffett Rule" to increase taxes on millionaires. He said that over the past 10 years, the United States has spent trillions of dollars on temporary tax cuts for the richest 2% of Americans, and now the United States plans to spend more than 10000 billion dollars. Today, the richest Americans pay one of the lowest taxes in 50 years. Billionaire Buffett pays a lower tax rate than his secretary, and the tax rate of middle-class families has hardly changed for 30 years. Obama said: "It's not fair. It's not reasonable. Do we still want to give tax cuts to the richest Americans like me, Warren Buffett, or Bill Gates, who don't need tax cuts and have never asked for tax cuts. I think it's common sense to ask billionaires to pay the same tax rate as his secretary. In this country, we don't envy success. We aspire to success. But we also believe that those who have done well themselves should do their part in return, so that more people have the opportunity to make progress, not just some people ". Obama called his plan the "Buffett Rule". Under the plan, if you earn more than $1 million a year, you should pay at least the same tax rate as middle-class families. If your family income is less than $250000 a year, like 98% of middle-class families in the United States, your tax burden will not increase. It is expected that the bill requiring the rich to raise taxes will be voted in the Democratic controlled Senate on April 16. However, analysts believe that the bill is unlikely to be passed by the Congress. But this is a remarkable symbol of the efforts Obama and congressional Democrats have made to shape themselves as advocates of economic fairness. The Associated Press commented that the Republican Party believed that Obama's idea was a political gimmick and had no real impact on the government budget. The Joint Committee on Taxation of the United States Congress estimates that if Obama's bill is passed by Congress, the government will collect an additional 47 billion dollars in taxes in the next 10 years, but this is insignificant compared with the US federal budget deficit of 7 trillion dollars in the same period. (Editor in charge: Bai Yu)
