Buffett Tax Proposal: Hype or Reality? (Interactive Graph Lets You Set the Tax Rate and See the Results)
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Given all the hype from President Obama and Warren Buffet on "fair tax rates" (see Obama evokes Reagan in Touting Buffett Rule), inquiring minds are asking the critical question: Does the US have a spending problem or a tax problem?
Rather than offer my own opinion, I will let you make the call. You can set whatever tax rate you want for the "Buffett Rule" all the way up to a tax rate of 100% on the following interactive Tableau display.
Thanks to Ross Perez at Tableau Software for the above interactive map.
Data is from the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937.
At a 30% Tax Rate the Buffett Effect Looks Like This
At a 75% Tax Rate the Buffett Effect Looks Like This
Set the tax at 100% if you want. However, I must point out the above results are theoretical.
The graph does not take into consideration the massive exodus of high net worth individuals if such a tax was actually enacted.
Stick it to Obama
The president has stated on numerous occasions he is willing to make "hard choices".
I propose offering him one. Republicans should accept Buffett's proposal in return for scrapping Davis Bacon, passing national right-to-work legislation, and ending collective bargaining of public unions.
Those three things are badly needed and will help cities and states immensely if Democrats accepted the offer.
Mike "Mish" Shedlock
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