The GOP Senate on Monday blocked a proposal to implement the Buffet Rule, which would impose a minimum 30 percent effective federal tax rate on those with adjusted gross incomes more than $1 million; it phases in for those making between $1 million and $2 million. The Democrats fell short after Republicans garnered a vote of 51-45, enough support to block debate and turn the bill down. President Barack Obama criticized Republicans saying they chose “once again to protect tax breaks for the wealthiest few Americans at the expense of the middle class.”
Taxpayers, who would be subject to the Buffet Rule or the “Paying a Fair Share Act,” would continue to get a break for charitable deductions and could count both the income and payroll taxes they paid when calculating what they would owe under President Obama’s proposed millionaire tax. Although the Buffet Rule, named after billionaire Warren Buffet, who widely claims he pays a lower effective tax rate than his secretary, was shot down by Republicans, Democrats plan to keep the issue alive on the campaign trail over the next six months to increase pressure on the GOP, according to Senator Charles Schumer, a member of Senate Democratic leadership. In a conference call on Monday, Schumer said, “We actually think we can pass something.”
