This is the eleventh post of the “Vital Issues” Series. This series examines the most important issues of the 2012 Presidential Election and how they will impact the future of our nation.
Over the course of the 2012 campaign, President Barack Obama has faced a lot of criticism for not laying out a formal plan that would define his second term.
You wouldn’t know it from watching his re-election campaign, but the president and his administration have actually given a lot of information about what his plans are for the economy, should he win a second term.
Most of the plan is laid out in the White House’s public blueprint for the plan, but the specifics are a little harder to track down — especially from the campaign’s site.
We’ve gone through the blueprint, and other related White House blog posts, and laid out the ideas that Obama has to keep the recovery going.
Implement the ‘Buffett Rule’
The cornerstone of Obama’s plan for deficit reduction is make people who make over $1 million per year pay a federal income tax rate of at least 30% — the so-called “Buffet Rule,” named after billionaire investor Warren Buffett, who supports the proposal.
At the moment, the highest income tax bracket is taxed at 35%. Through comprehensive accounting and taking advantage of existing tax law, many millionaires can bring their realized tax rate down into the 10-25% range.
The Obama administration has argued that this ruins the whole intention of the tax bracket system and needs to be fixed.
The Buffett Rule would mitigate the impact of a number of these tax write-offs that enable the rich to lower their realized rate of taxation, by stating that while the maximum tax rate is 35%, the wealthiest Americans should pay a minimum rate of 30%.
Source: The White House Buffet Rule