People earning over $1 million per year should pay an effective tax rate of no less than 30 percent, U.S. President Barack Obama said in his State of the Union address.
The president laid down one of his most political markers of the annual policy speech by crafting what he called the "Buffett Rule," named after the famous billionaire investor.
"Tax reform should follow the Buffett rule: If you make more than $1 million a year, you should not pay less than 30 percent in taxes," Obama said.
The president also said that Americans earning over $250,000 per year should also no longer be able to claim special tax breaks or deductions; he said households earning under $250,000 shouldn't face a tax increase, MSNBC reported.
Obama's pronouncement comes at a point of contrast, when the Democratic National Committee and the president's re-election campaign have assailed former Massachusetts Gov. Mitt Romney, one of the prime candidates for the GOP presidential nomination, for his tax burden.
Romney released his tax returns Tuesday at the behest of his Republican primary opponents. Those tax records found that Romney, whose net worth is estimated between $190 and $250 million, paid about 14 percent of his income in taxes. That's because his income came primarily through investments, which are taxed at a lower rate.
Obama's plan would raise taxes on millionaires like Romney and essentially treat their investment income like any other income.
