The Buffett Rule improves tax fairness by ensuring Americans who make more than $1 million a year can’t get special deals to pay a lower rate than many middle-class families. Mitt Romney opposes the Buffett Rule because it would mean people like him would have to pay more. In fact, Romney’s tax plan gives the average millionaire a $250,000 tax cut. To pay for these massive tax cuts, Romney will either drive up the deficit, gut programs important to the middle class, or both. Use the calculator to see how the Buffett Rule would level the playing field.
Americans who make more than $110 million a year pay a lower tax rate than you.
The calculator is based on a hypothetical comparison between you and an average member of America’s top 400 wealthiest taxpayers. These taxpayers are most often investors who make money with money, and get special treatment in the tax code—allowing them to pay a much smaller portion of their income than middle-class families who earn a living from wages. Sen. Whitehouse’s proposed Buffett Rule legislation would phase in for taxpayers earning between $1-2 million. Taxpayers earning over $2 million would pay 30% of their income in taxes, less modified charitable contributions.
The calculator assumes all income below $100,000 is wage income. IRS data is used to approximate income composition for higher income levels. The calculator estimates your deduction as 18% of AGI or the standard deduction, whichever is higher. The calculator assumes that, if applicable, you take the Earned Income Tax Credit and Child Tax Credit. Families with children are assumed to have two children.
The calculator rounds your estimated taxes to the nearest $5,000 increment. All calculated numbers are estimates.