The Buffett Rule and economic fairness

The Senate this week will take up legislation that would put the so-called "The Buffett Rule" into law, restoring fairness to our tax system by making sure that millionaires and billionaires don't pay a lower effective tax rate than middle-income families.

The "Paying a Fair Share Act" would ensure that multi-million-dollar earners pay at least a 30 percent effective tax rate on their income over $1 million, including capital gains and dividends. The Buffett Rule would limit the degree to which the wealthiest of Americans can take advantage of loopholes and tax rates.

According to the IRS, a full 22,000 households that made more than $1 million in 2009 paid less than 15 percent of their income in income taxes. Nearly 1,500 of them managed to pay no federal income taxes on their million-plus-dollar incomes.

"At the end of the day, it's about fairness," Senator Coons said. "It's about fairness in our tax system, and it's about saying to the average American that no one is above paying their fair share. We're going to have to make some tough choices as a country these next few years as we try to bring our dangerous deficits under control, and it's important that all Americans share in the sacrifice."

The principle gained the moniker "The Buffett Rule" after legendary financier Warren Buffett revealed that because of inequity in the tax system, he was paying a lower effective tax rate than his secretary.

“As both I and Warren Buffett have pointed out many times now," President Obama said last week, "he’s paying a lower tax rate than his secretary. That's not fair. It's not right.”

The White House has developed a simple calculator to help you figure out how many millionaires are presently paying a lower effective tax rate than you. Find out your "Buffett Number" below:

Senator Coons touts Buffett Rule on Morning Joe

Senator Coons appeared on MSNBC's Morning Joe on Wednesday to talk about his support for the Buffett Rule and other policies that promote fairness in our tax code. Watch below.

Video: Senator Coons, Rubio roll out bipartisan jobs bill

Senator Chris Coons (D-Del.) and Senator Marco Rubio (R-Fla.) hosted at a press conference on Tuesday to unveil their bipartisan bill to support job creation — the American Growth, Recovery, Empowerment and Entrepreneurship (AGREE) Act.  The AGREE Act stems from areas of common agreement between the President’s jobs plan, recommendations from the President’s Council on Jobs and Competitiveness, and plans put forward by both parties in Congress.

If enacted, the AGREE Act would do the following:

• Extend 100 percent bonus depreciation through 2012 for the full cost of qualified investments such as equipment and property.
• Extend Section 179 expensing levels for small businesses through 2012.
• Eliminate taxes on certain small business stock through 2012.
• Extend the Research & Development tax credit until 2013, increase the Alternative Simplified Credit (ASC) from 14 percent to 20 percent, and makes the ASC permanent.
• Provide veterans with a tax credit equal to 25% of the fee associated with starting a franchise up to $100,000.
• Provide a five-year exemption from Section 404(b) of Sarbanes-Oxley for the first five years of a company going public, or for those below $250 million in total gross revenue (whichever comes first).
• Eliminate the per-country numerical limitation for employment-based immigrant visas and adjusts the limitations on family based visa petitions from 7% per country to 15%.
• Protect intellectual property by clarifying the Trade Secrets Act, and making it explicitly clear that it is not a crime for federal officials, in the performance of their duties, to share information about suspected infringing products with the right holder of a trademarked good.

Delawareans are encouraged to click here to review the bill and share their opinions.

Click here to download a more thorough summary of the bill.  

Timing is running out for mortgage assistance program

Unforeseen financial hardships can bring the threat of foreclosure to even the most responsible of homeowners, and during these difficult economic times, many Delaware homeowners are finding it hard to keep up with their mortgage payments.

Fortunately, the Delaware State Housing Authority (DSHA), in conjunction with the U.S. Department of Housing and Urban Development, has created the Delaware Emergency Mortgage Assistance Program (DEMAP) to assist Delaware homeowners who are three or more months behind on their mortgage payments as a result of unemployment, reduced hours, illness or injury by providing a no-interest, forgivable loan of up to $50,000 for payments and back taxes. 

The window of opportunity to take advantage of this forgivable loan program is closing: applications must be approved and closed by September 30, 2011.

To be eligible for the DEMAP loan program, the homeowner must be a Delaware resident, be 90 or more days delinquent on their first mortgage payments, and face a risk of foreclosure. They must demonstrate a reasonable prospect of being able to resume payments in the near future, meet income eligibility requirements, and contribute 31% of monthly income towards their mortgage payments during the monthly payment assistance period.

If you are a Delaware homeowner who is behind on their mortgage because of unexpected hardships, know that you aren’t alone. For more information on the program, call 888-363-8808 or visit destatehousing.com.

Graphic: The drivers of our debt

The White House has developed a fascinating infographic that looks at the actual drivers of our nation's staggering debt. It reveals that the policies of the previous administration resulted in $7 trillion in new debt, whereas the policies of the current administration have resulted in $1.4 trillion in new debt.