This is the latest political gimmick...
..."A tax-the-rich proposal named after Warren Buffett has little chance of passing this year, but that hasn't stopped the debate over what impact it would have.
Some economists are skeptical that a 30 percent minimum tax on people with million-dollar incomes — known as the "Buffett rule" — would do much to reduce the deficit or boost the economy. But the Obama administration says the proposal is necessary to make the tax code more equitable."
..."he Buffett rule would apply to wealthy people, but not all wealthy people. Instead, it would affect the tiny number of taxpayers — some of the nation's wealthiest — who make most of their money from investments.
Rob Williams, a senior fellow at the Tax Policy Center, says the proposed rule would not affect many of the people we think of as "very rich."
"For high income people who get a lot of their income from wage and salaries —
the George Clooneys of the world, LeBron James, the CEOs — those people would not see an effect from the Buffett tax, because they're already paying tax rates above 30 percent," Williams says."
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.."But, he says, wealthy people who get their money from assets like stocks and bonds would feel the pain."
...""If you tax millionaires that are investing in, for example, municipal bonds, and they're enjoying the tax benefit of that interest, you could see a whole rash of investors moving away from buying bonds of our state and local governments," Ablin says."
The KEY above is the movement AWAY from municipal bonds and the buying of bonds of LOCAL government.
""If this tax were to go into effect Jan. 1 of next year," McBride says, "the stock market in December would not look pretty."
Over the longer term, McBride says, the law would do even more damage to the economy. Because people would have to pay more taxes on the profits they make, they would have less incentive to invest, he says."
Would The Buffett Rule Help The U.S. Economy? : NPR
Anything to pander and instead of actually helping the economy