Posted on 12/09/2019 10:55:26 AM PST by karpov
WASHINGTON — Elizabeth Warren is leading a liberal rebellion against a long-held economic view that large tax increases slow economic growth, trying to upend Democratic policymaking in the way supply-side conservatives changed Republican orthodoxy four decades ago.
Generations of economists, across much of the ideological spectrum, have long held that higher taxes reduce investment, slowing economic growth. That drag, the consensus held, would offset the benefits to growth from increased government spending in areas like education.
Ms. Warren and other leading Democrats say the opposite. The senator from Massachusetts, who is a leading candidate for the Democratic presidential nomination, contends that her plans to tax the rich and spend the revenue to lift the poor and the middle class would accelerate economic growth, not impede it. Other Democratic candidates are making similar claims about their tax-and-spend proposals. Some liberal economists go further and say that simply taxing the rich would help growth no matter what the government did with the money.
Democrats in the past, including the party’s 2016 nominee, Hillary Clinton, have argued that a more modest combination of tax increases and spending programs would expand the economy. But no Democratic nominee before Ms. Warren had ever proposed so many new taxes and spending programs, and leaned so heavily into the argument that they would be, in economist parlance, pro-growth.
That argument tries to reframe a classic debate about the economic “pie” in the United States by suggesting there is no trade-off between increasing the size of the pie and dividing the slices more equitably among all Americans.
Ms. Warren has proposed nearly $3 trillion a year in new taxes on businesses and high-earners, largely focused on billionaires but sometimes hitting Americans who earn $250,000 and above per year. The taxes would fund wide-reaching new government spending
(Excerpt) Read more at nytimes.com ...
Hasn’t worked before
Al Gore Junior said that $250,000 makes you a millionaire because in 4 years that is a million dollars
Expecting tax increases to speed up the economy is like lighting fire to a frame home with expectations that it will improve it and turn it into a brick structure.
If money is so evil, why do they always want more of it?......................
Excellent.
Does Warren not understand that people will always invest their money more competently than will government?
And the devil lies again.
We have better democrats, now.
The headline alone demonstrates stupidity gone to seed! Never in history has a tax increase ever sped up an economy! How can anyone imagine making anything healthier, by choking it?!
“Let the money stay in the rich and it will just sit around gathering interest in a trust fund, yadda yadda.
Spread it around the poor and they’ll spend it on things they need, stimulating the economy, yadda yadda.”
Nothing new year. The Left has been peddling that same old broken record for decades.
And 50k a year makes you a millionaire in 20 years.... So you are a millionaire...
I think the reasoning is along the lines of, “We need (illegal) immigrants to boost the economy,” but we need the tax funds to pay for their welfare and educational benefits.
Riiiiight.
Do they have any historic examples to prove their theory? There are many of them to prove the opposite!
You know what else would live up poor people and the middle class? Put a moritorium on immigration, deport the illegals and keep the fed gov out of the economy... and watch what would happen to labor rates ... as if by magic.
> Hasn’t worked before. <
Yep. But remember that old socialist line: This time it will be different.
Now here’s the thing. “Different” there can mean “different, and worse”.
Your comment stands on it own.
The less money they have, the less they can spend and the less they can invest.
Whoever then claims that more taxes taken by the government, the worse the economy gets!
This is simple math, that even a 6 year old can understand;but obviously, lefty adults are incapable of understanding.
Right we can reduce smoking by raising taxes on tobacco but taxing income will increase economic activity?
A person has to be totally brain dead to be a member of the current Democrat Fascist Party
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