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
http://globaleconomicanalysis.blogspot.com
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