People making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay. The White House has called that concept the Buffet Rule, named for Warren Buffett, the billionaire investor. It is unfair, Buffett has said, that he pays a smaller tax rate than his secretary. Debbie Bosanek, Buffett's secretary, joined Michelle Obama in the first lady's box during the State of the Union speech last month when President Obama laid out proposals to make the tax code fairer. Under legislation introduced Wednesday in the Senate, those whose incomes come mostly from investments or hedge-fund partnerships, now taxed at 15 percent, would owe more. Sen. Bernie Sanders is an original cosponsor of the bill that would make the wealthiest Americans pay their fair share and help reduce the national debt.  

"With a record-breaking $15 trillion national debt and a growing gap between the very rich and everyone else, it is absolutely absurd that the wealthiest people in the country are paying the lowest effective tax rate in decades," Sanders said. "There is no excuse for millionaires and billionaires to have an effective tax rate lower than middle-class families.  If we are serious about addressing this deficit crisis, it is imperative that we have a tax system which is fair and which asks the wealthiest people in our country to pay their fair share."

The Paying a Fair Share Act would apply to taxpayers with incomes of more than $1 million - including capital gains and dividends.  Taxpayers earning over $2 million would be subject to a 30 percent minimum federal tax rate.  The tax would be phased in for incomes between $1 million and $2 million, with those taxpayers paying a portion of the extra tax required to get them to a 30 percent effective tax rate.   The bill includes language to preserve incentives for charitable giving.

The chief sponsor is Sen. Sheldon Whitehouse. "As we continue working to restore our economy," he said, "it's more important than ever to make sure all Americans are paying their fair share toward our nation's success - and right now that just isn't happening.  It's inexcusable that our tax system permits the wealthiest among us to pay a lower tax rate than a truck driver or a janitor, and this legislation would help fix that unfair system."

In addition to Sanders, other cosponsors are Sens. Daniel Akaka, Mark Begich, Richard Blumenthal, Tom Harkin and Patrick Leahy. "As we grapple with large budget deficits worsened by the Bush tax cuts and two wars overseas, it is just common sense that those who have benefitted the most shoulder their fair share of the burden," Leahy said.