It is inexcusable that a multi-million-dollar earner can pay a lower tax rate than a Rhode Island truck driver, said Whitehouse after the vote. Todays vote on the Paying a Fair Share Act took us one step closer to ensuring that middle-class families across the country get the straight deal they deserve. Although we were unable to break the Republican filibuster, a majority of the United States Senate has gone on the record in favor of greater fairness in our tax code. Ill keep fighting to make the Buffett Rule law.
Whitehouses Paying a Fair Share Act would ensure that multi-million-dollar earners pay at least a 30-percent effective tax rate. It would apply only to taxpayers with income over $1 million including capital gains and dividends. Taxpayers earning over $2 million would be subject to a 30-percent minimum federal tax rate and the tax would be phased in for incomes between $1 million and $2 million.
The bill also includes language to preserve the incentive for charitable giving.
In addition to restoring fairness to the tax code, the Joint Committee on Taxation has estimated that the bill would generate $47 billion in new revenue over the next decade under current law, or $162 billion if the Bush tax cuts for the wealthy are extended. The bill is supported by President Obama and Warren Buffett himself.
In tonights vote, one Republican joined with 50 Democrats in supporting the bill.