The Buffett Rule is a tax plan proposed by President Barack Obama in 2011[1] to alleviate income inequality in the United States between the top 1% of Americans[2] and the remaining 99% of Americans, due to the disproportionate income growth in the 1% group as compared to the 99% group. The tax plan would apply to individuals earning more than $1 million per year; this comprised the top 450,000 of Americans by income when the rule was proposed .[3]
The plan is named after Warren Buffett, who publicly stated in early 2011 that he disagreed with the rich paying less in federal taxes, as a portion of income, than the middle class, and has voiced support for increased taxes on the wealthy.[4] It would implement a higher minimum tax rate for taxpayers in the highest income bracket, to ensure that they do not pay a lower percentage of income in taxes than less-affluent Americans.[5]
Representative Paul Ryan (R–Wis.) criticized the new tax provision, calling it class warfare and arguing that it would negatively impact job creation and investment.[6] Senate Minority Leader Mitch McConnell (R–Ken.) said the conditions of the U.S. economy were ill-disposed to raising taxes.[7]