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Wednesday, April 11, 2012

Obama renews call for 'Buffett rule' (Video)

President Obama stepped up his election-year insistence Tuesday that the wealthiest Americans pay a greater share of taxes, telling Florida college students that everybody must help rebuild the country.
Hoping to draw a sharp contrast with Republican presidential candidate Mitt Romney, Obama gave his support to the so-called "Buffett rule" -- which would change the U.S. tax law so that Americans making $1 million or more would have to pay at least 30 percent of their income in federal taxes. 
"Can we succeed as a nation where a shrinking number of people are doing really, really well but a growing number are struggling to get by?" Obama asked Florida Atlantic University students. "Or are we better off when everybody gets a fair shot ... and everybody does a fair share?"
The Buffett rule is named after billionaire investor Warren Buffett, who famously said it was wrong for him to being paying a lower tax rate than that levied on his secretary. The country's top earners often get much of their income in capital gains, which is taxed at 15 percent, a much lower rate the tax on large salaries.
Obama's return to the subject is prelude to a Senate vote next week, when the deadline passes for Americans to file their income tax returns. The plan has little chance of passing Congress, but Senate Democrats say the issue underscores the need for economic fairness.

Obama's team has made the Buffett rule a key part of its message, saying it shows clear differences with Romney, who has opposed the plan and faced criticism from Democrats for paying about 15 percent of his income in federal taxes for 2011, mostly on income derived from investments.
"Romney is a beneficiary of a broken tax system, and he wants to keep it that way," Obama campaign manager Jim Messina said Monday in a conference call with reporters.
Romney campaign spokeswoman Gail Gitcho said Obama was the "first president in history to openly campaign for re-election on a platform of higher taxes." She said the plan would raise taxes on small businesses.
Republicans have noted that Obama's proposal would collect $47 billion through 2022, a small amount compared with the $7 trillion in federal budget deficits projected during that period.
Rick Santorum, Romney's top Republican challenger for the party's nomination suspended his campaign Tuesday after taking off several days from the campaign trail because his 3-year-old daughter, Bella, was hospitlized with pneumonia. She suffers from a rare genetic condition called Trisomy 18 and was hospitalized Friday. She was discharged from the hospital Monday night.
Santorum's chances of winning the nomination were fading. Five states, including Santorum's home state of Pennsylvania, hold primaries April 24.
Romney was far ahead of Santorum in the race for delegates to the Republican National Convention and is the party's likely nominee. 
Obama has proposed that people earning at least $1 million annually, whether in salary or investments, should pay at least 30 percent of their income in taxes. Many wealthy taxpayers earn investment income, which is taxed at 15 percent, allowing them to pay a smaller percentage of their income in taxes. By contrast, the top rate for taxpayers with high incomes derived from wages is 35 percent.
The White House said in a report released ahead of Obama's speech that the tax proposal would restore fairness to the system, pointing to 22,000 households earning more than $1 million annually that paid less than 15 percent of their income in income taxes in 2009. Nearly 1,500 of those households paid no federal income taxes, the report said.
Obama economic adviser Jason Furman said the Buffett rule reflected the "most simple, common-sense element of any tax reform."
Obama was holding three fundraisers near West Palm Beach and Fort Lauderdale. The events were expected to raise at least $1.7 million. A large rally-style event in Hollywood, Fla., was to include a musical performance

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