Interesting idea from Warren Buffett/President Obama that proposes that if households earn $1m a year that have to pay tax at at least the rate that middle income earners are currently paying.
What they are suggesting is to cut through the creative accounting, special tax breaks, whatever and ensure that the wealthiest people in our society contribute to the tax base at least proportionally the same as middle income tax payers.
What do you think ?
Read more: http://www.theage.com.au/victoria/un...#ixzz1ubUZAaL5After comments from Mr Buffett that some millionaires paid a smaller percentage of their incomes in taxes than many middle-class families — he pays a lower effective tax rate than his secretary — the Obama administration has proposed the Buffett Rule.
The White House's website describes the rule that no household making more than $1 million should pay a smaller share of their income in taxes than middle-class families pay.
"The Buffett Rule would limit the degree to which the best-off can take advantage of loopholes and tax rates that allow them to pay less of their income in taxes than middle-class families."
The ACTU will call on the government to adopt an Australian version of the rule that would ensure millionaires who principally derived their income from capital gains paid at least as much in tax as a proportion of their incomes as ordinary working Australians.
Mr Lyons said a tax mechanism would be developed so that regardless of a person's source of income everyone would be taxed on a level playing field. "The income tax system is absurdly inequitable when it comes to taxing the mega-rich."