US President Barack Obama will propose a new tax rate for the rich on Monday, to aid Us economy, despite warnings and Republican’s refusal to support the initiative in American Congress.

President Obama will announce a series of initial tax rate moves to cope with the sreadily rising national debt, along with his plan to decrease unemployment rate, currently affecting more than 14 million people in America, according to The New York Times.

Us Economy seeks help from Buffett Rule

The idea known as the “Buffett Rule” would set a new minimum tax rate for the rich, and though it would only affect 0.3 percent of taxpayers (less than 450,000 people), it has encountered a bitter response in Congress. It is to be called the “Buffett Rule.” Warren Buffett, one of the wealthiest billionaire investors in the world, has always voiced his opinion on the rich paying a much smaller share of their income in federal taxes than middle-class taxpayers. Buffett refers to Congress as being billionaire friendly.

American Economy : Obama’s New Tax Cuts and Plan

In an attempt to jumpstart the declining American economy, which is in recession, this initiative would be in addition to $447 billion in new tax revenue that US President Obama is seeking to pay for his short-term spending and tax cutting plan in an attempt to stabilize Us economy.

The White House is demonstrating once again that it does not want to continue with the tax cuts for the rich implemented under the Republican government of George W. Bush, and which expire in January 2012.

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