Would the Buffet Rule Change the Tax Rate for the Wealthy? Tax Expert Professor Kaplan Says No
Monday, February 06, 2012
In an interview with the Illinois News Bureau, Professor Richard Kaplan explains that a so-called “Buffett Rule” that would create a higher minimum tax rate for those with income greater than $1 million per year would have little effect on the taxes of the real-life Warren Buffett unless it takes capital gains into account.
If the Bush tax cuts, he says, were allowed to expire, starting Jan. 1, 2013, capital gains would be subject to their pre-cut rate of 20 percent, and high-income earners would pay an additional 3.8 percent in Medicare taxes.