Posted on 12/12/2019 12:06:34 PM PST by Oldeconomybuyer
Senator Elizabeth Warren's plan to tax the fortunes of uber-wealthy Americans could generate $1 trillion less in revenue than she forecasts, according to a new analysis.
Warren has proposed imposing a 2% surcharge tax on wealth of $50 million or more, with the rate rising to 6% on billionaires. Her campaign estimates the tax would generate about $3.75 trillion in new revenue, which would be used to fund "Medicare for all" and other public programs.
Not so fast, according to the University of Pennsylvania's Penn Wharton Budget Model. The nonpartisan research group says Warren's wealth tax is likely to generate $2.7 trillion over a decade, or about $1 trillion less than she expects, partly due to tax avoidance by wealthy families.
The projection "includes both legal responses by taxpayers to reduce their tax exposure as well as illegal evasion," they note.
Warren's campaign pushed back, saying the analysis failed to account for the "strong anti-evasion measures in her wealth tax," according to a spokeswoman.
The analysis says a wealth tax could also crimp U.S. economic growth and hurt wages. By the Penn Wharton experts' reckoning, the wealth tax would cause the economy to contract between 0.9% and 2.1% by 2050. Average wages could also slide, even affecting households not rich enough to qualify for the tax.
(Excerpt) Read more at cbsnews.com ...
Two words: Laffer Curve.
Well, I guess that’s one little mark against it. But on the plus side, it will totally destroy the US economy.
“””””it will totally destroy the US economy.””””””””
Who cares ????? We would all be getting free stuff so it won’t matter, Jack.
A trillion dollars off? That’s a rounding error for socialism
Lizzy/Dizzy Warren:. GOVERNMENT SPOKESIDIOT from the TAX & SPEND Tribe!
How dare she let the rich keep $50 Million!!! Only 6% of Billions? Let them all keep one million each and that’s it. Come on Elizabeth.
Lizzy/Dizzy Warren:. GOVERNMENT SPOKESIDIOT from the TAX & SPEND Tribe!
TRUMP has donated his salary. Hey, Liz.... why not do the same? Or are you just a lying hypocrite?
I keep hoping people will finally figure out how stupid this broad truly is!!
No worries - Fauxcahantas will also be repealing the law of supply and demand.
Socialism is the philosophy of failure, the creed of ignorance and gospel of envy. - Winston Churchill
It’s not a tax. It’s confiscation. And it’s every year. So if you have a certain amount, they take a certain percent every year. And the same thing next year. It’s the European “tax” on fortunes. Assets. Wealth. Principal.
It’s seizure of a part of accumulated wealth. It’s not a tax consisting of a percentage of earned income.
The public hears the word tax, and thinks it’s a tax.
That amount is one year’s worth of what it takes for Medicare for all. It will cost and additional $4 to 5 Trillion a year on top of the regular budget.
It will contract more than that and much faster.
And that estimation doesn’t account for what both Warren and the study acknowledge is a significant increase in enforcement resources.
Their “candidate” has not yet arrived. Please hold....
Thanks 4Liberty
Lol. Economic projections by Wiccans are as accurate as the bs spewed by economists. It a charlatan profession.
Any nation’s economy is far too complex to be more than partially understood. Thus all attempts by govt to micromanage an economy are absolutely doomed to fail. One can make some broad predictions like raising taxes will do this or that. But to predict that some specific intervention will generate X dollars is pure moonshine. You may as well consult the Delphic Oracle as a PhD in economics.
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