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Thursday, April 12, 2012 10:50 AM

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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