U.S. President Barack Obama makes a point during remarks at the Congressional Hispanic Caucus Institute's awards gala in Washington, September 14, 2011.(Agencies)
President Barack Obama, in a populistgesture designed to appeal to voters, will propose a "Buffett Tax" on people making more than $1 million a year as part of his deficit recommendations to Congress on Monday.
Such a proposal, among suggestions to a congressional Super Committee expected to seek up to $3 trillion in deficit savings over 10 years, would appeal to his Democratic base ahead of the 2012 election but likely not raise much in revenues.
White House Communications Director Dan Pfeiffer said in a tweet on Saturday the tax would act as "a kind of AMT" (Alternative Minimum Tax) aimed at ensuring millionaires pay at least as much tax as middle-class families.
The "Buffett Tax" refers to billionaire investor Warren Buffett, who wrote earlier this year that rich people like him often pay less in tax than those who work for them due to loopholesin the taxcode, and can afford to pay more.
Obama will lay out his recommendations in White House Rose Garden remarks at 10.30 am on Monday and is expected to urge steps to raise tax revenue as well as cuts in spending.
But Congress is at libertyto ignore his suggestions and Republicans, who control the House of Representatives, have said that they will not agree to tax hikes.
The super committee of six Democrat and six Republican lawmakers must find at least $1.2 trillion in deficit savings before the end of the year to avoid painful automatic cuts, and is mandated to seek savings of up to $1.5 trillion.
