(Washington, DC) -- A proposal to implement the Buffett Rule was blocked in the Senate on Monday, but proponents of the millionaire tax vowed to keep the issue alive in the months ahead.
Republicans, as expected, garnered enough support to reject Democrats' attempt to bring up the proposal for debate. The Democrats fell nine votes short.
The bill would impose a minimum 30 percent effective federal tax rate on those with adjusted gross incomes above $1 million, although it phases in for those making between $1 million and $2 million.
Taxpayers subject to the Buffett Rule would still get a break for charitable deductions and could count both the income and payroll taxes they paid when calculating what they would owe under the Buffett Rule.
The Buffett Rule bill itself may be dead for now, but Democrats are planning to resurrect the idea repeatedly on the campaign trail over the next six months to increase pressure on Republicans, according to Sen. Charles Schumer, a member of Senate Democratic leadership.
who think the solution to our debt crisis is to force middle class families to
pay a higher tax rate than multi-millionaires, while expanding tax giveaways to
those same multi-millionaires, are not serious about tackling our nation's
"During my last two weeks traveling the state of Missouri, I heard from middle class families that they want someone to stand up and fight for fairness. I'm disappointed that we didn't have enough Senators today who were willing to help level the playing field for middle class families, but I'm going to keep fighting."
"As our nation continues to face skyrocketing fuel costs, lagging unemployment, and record federal debt, the last thing families and job creators need is more political posturing from Washington. But unfortunately, that's exactly what we witnessed in the Senate today with this vote on the so-called Buffett Tax.
"This bill is simply another gimmick that would do nothing to jumpstart job creation or lower fuel costs, which are on track to reach $4.00 a gallon by summertime. Instead, it would only generate less than 1 percent of the $7 trillion in deficits projected under President Obama's budget, which will be used for more spending.
we're going to get our economy back on track, we must work together to pass
bipartisan solutions. That includes the job-creating Keystone XL Pipeline and a
pro-growth tax structure in order to encourage businesses to invest and
PRESIDENT OBAMA'S RESPONSE:
"Tonight, Senate Republicans voted to block the Buffett Rule, choosing once again to protect tax breaks for the wealthiest few Americans at the expense of the middle class.
"The Buffett Rule is common
sense. At a time when we have significant deficits to close and serious
investments to make to strengthen our economy, we simply cannot afford to keep
spending money on tax cuts that the wealthiest Americans don't need and didn't
ask for. But it's also about basic fairness
- it's just plain wrong that millions of middle-class Americans pay a higher
share of their income in taxes than some millionaires and billionaires.
"One of the fundamental challenges of our time is building an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same rules. And I will continue to push Congress to take steps to not only restore economic security for the middle class and those trying to reach the middle class, but also to create an economy that's built to last."