Warren Buffett's secretary: Obama's poster child for tax reform

By Anne Walters Jan 24, 2012, 23:03 GMT

Washington - Warren Buffett's secretary will sit alongside Michelle Obama Tuesday evening as President Barack Obama calls for economic policies that will be more fair to the country's middle class.

Against the backdrop of looming presidential and legislative elections, Obama will give his third State of the Union at 9 pm Tuesday (0200 GMT Wednesday) at the US Capitol to a chamber packed with lawmakers and invited guests.

Debbie Bosanek, Buffett's long-time assistant at Berkshire Hathaway, has been held up by the billionaire businessman as an example of unfair tax policies that the billionaire investor says have his secretary paying taxes at a higher percentage rate than he does.

Along with other invited guests who symbolize key elements of Obama's speech, she will share the first lady's box.

Obama has in the past called for tax reforms that would have millionaires contributing a greater share in taxes. Currently, many wealthy Americans pay a lower effective tax rate because much of their income comes from investments, which are taxed at a lower rate than the highest 35-per-cent rate for income.

White House advisor David Plouffe earlier Tuesday pointed to tax returns released by Republican candidate Mitt Romney that showed he paid around 15 per cent in taxes on more than 42 million dollars in income.

'It is an example of what Warren Buffett talked about, which was someone like him shouldn't be paying less effective tax rate than his secretary,' Plouffe said, noting that Obama will elaborate on his tax policies in the State of the Union.

'As we look at how do we close our deficit, how do we invest in the things we must to grow the middle class, we have to have a tax code that's both more simple but more fair,' he said. 'You can't have people making 50 (million) dollars, 60 (million) dollars, 100 (million) dollars, 200 million dollars a year paying less effective tax rate than the middle class.'

The White House has said the speech will focus on producing a fair economy in which the middle class can get ahead with an emphasis on American manufacturing, energy policy, jobs and values.