The so-called Buffett Rule — whose namesake pays a lower tax rate than his secretary — would ensure that millionaires and billionaires pay more taxes. U.S. Representative Tammy Baldwin (D-Madison) calls her bill (HR-3903) a “common sense step forward.”
Under the “Paying a Fair Share Act,” taxpayers earning more than $1 million would be required to pay a minimum federal tax rate of 30 percent. The Madison Democrat says anyone earning less than $1 million would not be affected by the measure. “People right now feel like the wealthiest Americans are gaming the system and there are two sets of rules.”
The measure would only affect the richest one-tenth of 1 percent of the population. This legislation would not affect the capital gains tax rate. It would also preserve the deduction for charitable giving. Baldwin says the legislation could generate between $40 billion and $50 billion a year.
Tommy Thompson, who, like Baldwin, is vying for Senator Herb Kohl’s Senate seat, issued a statement following her remarks. “Tammy Baldwin cannot hide behind Warren Buffett to mask her agenda to grow government with massive tax and spending increases. The American economy is fragile. We cannot afford massive tax increases.”
Baldwin says her legislation would help level the playing field between middle class taxpayers and millionaires and billionaires. It’s a companion to one introduced in the Senate by Senator Sheldon Whitehouse (D-RI) last week.