Obama’s new signature tax hike initiative, the Buffett Rule, would not apply to him according to his 2011 tax return released by the White House.
The liberal proposal to raise taxes on the rich would only come into play had Obama made at least $1 million. His return shows that the President only made $789,674 last year – mostly from book sales.
The Obama’s tax bill came to $162,074 which means his effective tax rate was just over 20%.
The White House announcement contradicts both the initial idea of the Buffett Rule and the legislation built upon it – the Paying a Fair Share Act of 2012. In the announcement, the White House says, “Under the President’s own tax proposals, including the expiration of the high-income tax cuts and limitations on the value of tax preferences for high-income households, he would pay more in taxes while ensuring we cut taxes for the middle class and those trying to get in it.”, but the Buffet Rule was to put a higher tax rate on those making $1 million or more and the Paying a Fair Share Act of 2012 has only that provision.
The Paying a Fair Share Act has no chance to pass the House and will likely fail in the Senate. The populist legislation will have the intended effect of characterizing Republicans to be protecting the wealthy when the GOP defeat Obama’s latest effort to redistribute the wealth of American citizens.
Democrats have positioned the legislation as a deficit-cutting move while no one actually believes that the ~$4 billion in annual revenue will go to anything but increasing the size of government – Congress has yet to meet a dollar that they cannot spend.