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U.S. President Barack Obama is about creating a new tax for America’s rich. This means anyone with an income of a million dollars or more. The plan is part of his ongoing efforts to the country’s huge deficit. Details of the new tax have not yet been unveiled. White House insiders say from raising more money, the aim is to ensure top earners are not paying tax rates than middle earners. The idea for the new taxes came from billionaire investor Warren Buffett. Obama from him in a speech he made in August, arguing that the nation’s individuals have been “coddled enough by a billionaire-friendly Congress”. Obama will also end tax for gas and oil companies.

Warren Buffett outlined his proposals to put taxes on the rich in the New York Times. He wrote that the income tax he last year was $6,938,744, going on to say: “That sounds like a of money, but what I paid was only 17.4 per cent of my income and that’s actually a lower percentage than was paid by any of the other 20 people in our .” He highlighted how the tax system was and how it favoured the mega-rich by saying that his middle-class employees had tax burdens from 33 per cent to 41 per cent, with an of 36 per cent.” Mr Buffett said there were too many tax loopholes, which the richest pay relatively less tax. Reports say the proposal is likely to be the Buffett Rule.