The proposal is expected to include billions in cuts to Medicare, Medicaid and defense programs. | AP Obama to urge higher taxes on rich

President Barack Obama will propose a new higher tax rate for millionaires, the White House confirmed Saturday, giving his deficit-cutting proposal a populist sheen that will invigorate the Democratic base but draw swift opposition from Republicans.

He will call it the “Buffett Rule,” a nod to billionaire investor Warren Buffett, who has criticized a system that allows the rich to pay a smaller portion of their income in taxes than middle- and working-class Americans because wages are taxed at a higher rate than investment income.


Obama will include the tax in a new proposal that he’s set to release Monday at the White House, his latest effort to guide Congress toward a plan that lowers the debt by $1.9 trillion through both spending cuts and new tax revenue.

The proposal is expected to include hundreds of billions of dollars in cuts to Medicare, Medicaid and defense programs, as well as a call on Congress to overhaul the Tax Code.

Democrats have balked at the idea of accepting cuts to entitlement programs without forcing Republicans to agree to new tax revenue. The proposal is certain to energize the progressive base, which has wanted Obama to draw sharper contrast with Republicans for defending tax breaks for the wealthy.

House Speaker John Boehner (R-Ohio) reiterated his party’s no-new-taxes mantra during a speech last week at the Economic Club of Washington.

Tax increases “are not a viable option,” Boehner said.

It is unclear how much the new tax rate for millionaires would raise, but it would impact only 0.3 percent of taxpayers, a White House official said.

The proposal was first reported Saturday by The New York Times.