Buffett Rule
 |
Definition of 'Buffett Rule'A tax rule proposed in 2011, by President Barack Obama, stating that individuals in the highest income bracket must pay at least 30% of their income in federal taxes. The Buffet Rule requires that no household earning more than $1 million should be taxed less on income than less-affluent families. The bill that was inspired by this rule, Bill S. 2059, known as the "Paying a Fair Share Act of 2012," was later rejected by the Senate in April 2012.Also called the Fair Share tax. |
 |
Investopedia explains 'Buffett Rule'The Buffett Rule was named after the legendary investor, Warren Buffett, who made a note that he pays a lesser federal tax rate than his secretary does. While some Americans believe the rich do not pay enough tax, the Rule was proposed as a measure of tax impartiality asking that everyone pay their fair share in taxes. Critics of the Buffett Rule state that there would be no significant difference to rich individuals' pockets if their income tax rates were increased, since the majority of their accumulated income and wealth is made through investment dividends and capital gains, not necessarily income. Supporters of the Rule, on the other hand, believe it is a first step in closing the loophole in the tax code. |
Related Definitions
Articles Of Interest
-
Countries With The Highest Tax Rates
Find out how America compares to other nations when it comes to factors such as overall tax burden and total number of hours spent on taxes. -
Dividend Tax Rates: What Investors Need To Know
Find out how legislation enacted in 2003 is benefiting both investors and corporations, and when it's scheduled to expire. -
How Your Tax Rate Is Determined
Feel like the government always has its hand in your pocket? Learn the theory behind how it decides how much to take. -
How To Owe Nothing On Your Federal Tax Return
You have the control to determine whether you owe in April. Learn more here. -
A Concise History Of Changes In U.S. Tax Law
We look at how U.S. taxes have changed since their inception. -
Warren Buffett: How He Does It
We look at the Sage of Omaha's methodology for evaluating value stocks. -
Think Like Warren Buffett
They don't call him "The Oracle" for nothing. Learn how Buffett comes up with his winning picks. -
Hedge Fund Fees: Exotic Expenses
Warren Buffett made a bet with Protégé Partners, a fund of funds hedge fund manager, that the S&P500 would beat a group of hedge fund managers selected by Protégé. The bet officially started ... -
New Tax Rules Target The Top Tax Bracket
The American Taxpayer Relief Act brings about new tax rules for the wealthy that people such as Warren Buffett have been calling for over the last few years. -
The Financial Fallout Of The DOMA Repeal For Same-Sex Couples
The recent Supreme Court decision to repeal the Defense of Marriage Act has paved the way for same-sex couples to enjoy the same federal benefits as opposite-sex couples.
Free Annual Reports