What would a tax on millionaires raise?

Looking at proposals to raise revenue to cover the federal government deficits, the one item the President always come back to is that the “rich don’t pay their fair share”, and that if millionaires and billionaires paid more equitable amounts, the deficits would disappear (or be lessened).

A study was just completed by the Joint Commitee on Taxation that the “Buffett Rule” would generate less than $5 Billion per year. The “Buffett Rule” states that individuals making more than $1,000,000 would be subject to an additional 5% tax on income.

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The main thing to learn from this lesson in the lack of restraint by the government is that taxes will have to increase for everybody, so now is the time to visit with a qualified tax and estate planner and to ensure that your assets are properly set up in a trust or other estate planning device to avoid future taxation by Uncle Sam when these deficits become due.

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