Buffett Rule

Definition

A tax rule change included in President Obama's budget proposal named after Warren Buffett's public support of increasing income taxes on the wealthy. If enacted, those who earn more than one million dollars a year would pay a minimum effective tax rate of 30%. This would not affect millionaires that receive most of their income from their salary and already have tax rates higher than 30%, but would affect those who earn the majority of their income from investments and long-term capital gains which are typically taxed closer to 15%.
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buffer zone Buffett, Warren