Buffet Bill Moves to the Senate; Allows Buffet to "Put His Money Where His Mouth Is"

The House on Wednesday passed Republicans’ own version of the Buffett Rule, which allows wealthy Americans to voluntarily pony up to reduce the deficit.

The bill, labeled the Buffett Rule Act, passed by voice vote, meaning Democrats and Republicans agreed with it. Under the legislation, which would still need Senate approval, taxpayers could check a box on their taxes and send in a check for more than they owe to the IRS.

“If Warren Buffett and others like him truly feel they’re not paying enough in taxes, they can use the Buffett Rule Act to put their money where their mouth is and voluntarily send in more to pay down the national debt, rather than changing the entire tax code to inflict more job-killing tax hikes on hard-working Americans,” said Rep. Steve Scalise, the Louisiana Republican who wrote the bill.

President Obama and Democrats had proposed a Buffett Rule tax, based on billionaire investor Warren Buffett’s statement that he shouldn’t pay a lower rate on his income than his secretary.

Investments are taxed at a lower rate than salary or wage income under the theory that they are spurring economic growth, so wealthy investors usually pay less as a percentage, though they end up paying far more in real dollar terms.

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