President Obama invokes the “Buffett Rule” in his State of the Union address.
“Tax reform should follow the ‘Buffett Rule’. If you make more than a million dollars a year, you should not pay less than 30% in taxes,” Obama stated during the speech to a joint session of Congress.
But, for Congressman Lee Terry, who represents Buffett’s home town of Omaha, the “Buffett Rule” hasn’t been adequately explained.
“I’m still confused about what the ‘Buffett Rule’ is,” Terry tells Nebraska Radio Network. “Does that mean that capital gains tax is going to be raised to 30%?”
Terry notes that Buffett earns most of his income off dividends from Berkshire Hathaway investments. He says increasing taxes on capital gains would hurt, not help job growth.
AUDIO: President Obama invokes “Buffett Rule” in State of the Union address [4:07]
AUDIO: Congressman Lee Terry reacts to “Buffett Rule” portion of SOTU [1:05]