U.S. President Barack Obama has proposed a “Buffett Tax” on Americans earning more than $1 million per year.

The Buffett Rule is designed to ensure that all Americans must pay their fair share of taxes that will help tackle the country’s deficit and enable its fast economic recovery.

He says it will help cut the country’s deficit by $3 trillion over the next 10 years.

Obama named it after billionaire Warren Buffet, the U.S. investor and world's third-richest man. Warren earlier said that rich people like him often pay less in taxes than those who work for them due to loopholes in the tax system, and can afford to pay more.

“Middle-class families shouldn’t pay higher taxes than millionaires and billionaires,” said Obama at the White House on Monday.

He said, “Warren Buffett’s secretary shouldn’t pay a higher tax rate than Warren Buffett. There is no justification for it.”

He proposed his wide-range of tax and budget proposals on Monday, but Republicans rejected it, calling it a political stunt, designed to appeal to the voters. The Republicans said it had little chance of becoming a law.