In September, President Obama released a deficit reduction package for consideration by the congressional Super Committee that included a new tax reform recommendation regarding millionaires. Dubbed the "Buffett Rule," the proposal states, “No household making over $1 million annually should pay a smaller share of its income in taxes than middle-class families pay,” and it would address a long-standing disparity between the taxation of labor income and investment income. Indeed, going beyond the Buffett Rule and taxing capital income on par with labor income would not only bring in much needed revenue, it would help to reduce income inequality, a source of economic inefficiency.