Obama budget proposals include replacing AMT with ‘Buffett Rule’

Among the many proposals President Barack Obama sent to Congress today regarding the fiscal year 2013 budget is a measure that would replace the Alternative Minimum Tax with what’s become known as the “Buffett Rule.” Named after billionaire Warren Buffett—who says he pays a lower tax rate than his secretary and advocates for higher taxes on the wealthy—the rule seeks to ensure households making more than $1 million annually pay at least 30% of their income in taxes. Obama unveiled a $3.8 trillion spending plan today for 2013 that seeks to achieve $4 trillion in deficit reduction over the next decade but does little to restrain growth in the government’s huge health benefit programs, a major cause of future deficits. The president would achieve $1.5 trillion of the deficit reductions in tax increases on the wealthy and by removing certain corporate tax breaks. Obama rejected GOP charges of class warfare, saying: “This is not about class warfare. This is about the nation’s welfare.” Read the full story here.