Clinton is calling for a multi-millionaire surcharge as a direct way to ensure that the most fortunate pay their fair share. As a result of loopholes and the “private tax system” of lawyers and accountants who enable complex strategies to shelter and lower the bill on income for the most fortunate, some of the wealthiest taxpayers continue to pay low effective rates on their income. Today, one-quarter of the top 400 taxpayers who make on average $250 million per year pay less than a 20 percent effective Federal income tax rate– and the top 400 taxpayers pay an overall effective rate that is around 7 percentage points lower than the mid-1990s, a period of strong, shared economic growth. As part of her plan for expanding on the Buffett Rule, Clinton’s plan calls for a 4 percent multi-millionaire “Fair Share Surcharge” on the top 0.02 percent of taxpayers on their income above $5 million per year – affecting roughly 2 out of every 10,000 taxpayers. The experience of the past few years shows that a surcharge can directly raise the effective rates on the very-highest-income taxpayers, in ways even their tax maneuvers cannot game: as a result of President Obama securing the end of the high-income Bush tax cuts and other measures, the effective rate paid by the top 400 taxpayers rose from less than 17 percent to the most recent rate of 23 percent.