RELEASE: 3 Reasons Why Americans Need the Buffett Rule, 3 Reasons Why the Critics Are Wrong
Washington D.C. — As lawmakers in Washington prepare for next week’s vote on the Paying a Fair Share Act, the Center for American Progress today released an analysis detailing three reasons why the measure is good for our nation, alongside three reasons why its critics are wrong.
The bill, sponsored by Sen. Sheldon Whitehouse (D-RI), codifies the “Buffett Rule,” the principle that no millionaire should pay a smaller percentage of income in taxes than middle-class families. While this principle of tax fairness should be uncontroversial, it has become a lightning rod for criticism, much of it misplaced. The analysis released today seeks to set the record straight about what the Buffett Rule will and will not do.
What the Buffett Rule will do:
- The Buffett Rule will restore a sense of fairness by ensuring that no millionaire is paying a lower tax rate than middle-class families.
- The Buffett Rule will require those who have captured an outsized share of the gains to finally contribute to deficit reduction.
- The Buffett Rule will make a sizeable contribution to reducing deficits.
What the Buffett Rule won’t do:
- The Buffett Rule won’t harm small businesses or job growth.
- The Buffett Rule won’t affect the middle class … not even close.
- The Buffett Rule won’t preclude tax reform and in fact is a step toward tax reform.
“The Buffett Rule vote provides an opportunity to make a modest but important improvement to the tax code, both in terms of fairness and in terms of raising sufficient revenue,” said Seth Hanlon, author of the analysis and Director of Fiscal Reform at the Center for American Progress. “A vote for the Buffett Rule is a vote to move forward in addressing national challenges with balance and fairness.”
Related resources on the Buffett Rule:
- President Reagan Backs the Buffett Rule (ThinkProgress)
- A Millionaire’s Tax and the Economy (CAP Action event video footage featuring Sen. Sheldon Whitehouse (D-RI) and Deputy Director of the National Economic Council Jason Furman)
- VIDEO: Reagan Called For An End To ‘Crazy’ Tax Loopholes That Let Millionaires Pay Less Than Bus Drivers (ThinkProgress)
- Rich Americans are Not Over Taxed by Sarah Ayers
- Ask the Expert: The Buffett Rule by Seth Hanlon
- Why We Need a Buffett Rule by Seth Hanlon
- The Three Things You Need to Know about Millionaire Tax Rates by Sarah Ayers
- Ronald Reagan, Father of the ‘Buffett Rule’ by Seth Hanlon and Michael Linden
- Many Millionaires Do Enjoy Lower Tax Rates by Seth Hanlon
To speak with a CAP expert about the Buffett Rule, please contact Katie Peters at 202.741.6285 or KPeters@americanprogress.org.