Warren Buffett, CEO of Berkshire Hathaway, and Jamie Dimon, CEO of JPMorgan Chase, have both voiced their support for higher taxes on the wealthy to address the growing federal deficit. They argue that this is a matter of fairness and fiscal responsibility.
Dimon has specifically advocated for the adoption of the "Buffett Rule," which suggests that households earning over $1 million per year should not pay a smaller share of their income in taxes than middle-class families. This rule gained traction in 2011 when Buffett pointed out that his secretary paid a higher tax rate than he did.
However, some experts note that a simple "millionaire's tax" might not significantly impact the wealthiest individuals, as they often derive their income from investments rather than wages. These individuals can utilize strategies such as the "buy, borrow, die" approach to minimize or avoid taxes on their wealth. Closing loopholes related to investment income and capital gains may be necessary to ensure a true impact on the wealthiest Americans.