Posted on 12/12/2019 5:46:59 PM PST by karpov
Elizabeth Warren has been justly criticized for the magical math in her Medicare for All proposal. That health plan would cost perhaps $34 trillion, according to outside estimates. But Ms. Warren says the true figure is only—alakazam!—$20.5 trillion.
Her wealth tax is the same way, as a fiscal fact check this week demonstrates. Ms. Warren wants to tax the net worth of affluent Americans 2% a year on assets above $50 million, and 6% on billionaires. She says it would raise $3.75 trillion over 10 years.
Her campaign cites a letter from two economists at UC Berkeley, Emmanuel Saez and Gabriel Zucman. They say that because Ms. Warren’s proposed tax doesn’t have any loopholes, “the avoidance/evasion response is likely to be small.” Assume 15%, they continue, pointing to studies of wealth taxes in Scandinavia, Colombia and Switzerland.
One economist who takes issue with these assumptions is Democrat Larry Summers. The current estate tax is nowhere near so efficient, he and a co-author, Natasha Sarin, have said. They argue that Messrs. Saez and Zucman don’t seriously account for tax avoidance, other than by “reducing a naive calculation by 15 percent.”
Making matters worse, Ms. Warren subsequently doubled her proposed tax rate on billionaires. At first it was going to be 3%. But as she tried to find a way to finance Medicare for All, she raised it to 6%. This would compound the incentives to avoid the tax.
On Thursday the analysts at the Penn Wharton Budget Model pitched in their two cents. According to their dynamic estimate, which takes account of macroeconomic effects, Ms. Warren’s tax would bring in only $2.3 trillion over 10 years. That’s almost $1.5 trillion less than Ms. Warren is counting on.
(Excerpt) Read more at wsj.com ...
No problem. She’ll just double them.
Anytime Fauxahontas opens her mouth, there will be lies coming out. These lies spew from the leftist rot that fills the heads of Demonicrats.
Well, what’s $1.5 trillion give or take? I mean it’s not like the money isn’t always there anyway.
It would also crater the economy (the real goal - broke and disarmed people are easy to rule - see Venezuela). Oh and it’s grossly unconstitutional.
Magical Math - as opposed to real math with all of its white cishetero patriarchy?
“ the avoidance/evasion response is likely to be small.” Assume 15%, they continue, pointing to studies of wealth taxes in Scandinavia, Colombia and Switzerland.“
Big breath...
LOLOLOLOLOLOLOLOLOLOLOLOLOLOL
The middle class will make up the difference. That was the plan all along.
A $trillion here, a $trillion there; and before long, you’re talking real money.
As if Warren has tried to accomplish this while in the Senate.
That’s before the “there’s always” money she talked about.
actually, warren’s “wealth tax” would fall 100% short of any projection since arbitrary seizure of private property by any government is unconstitutional; any “wealth tax” would require a Constitutional amendment, just like the income tax required a Constitutional amendment to be legal ...
Chump change for these socialist bastards. They will just print some.
And lower the tax to anyone who has a dollar in their pocket. Just take 3-6% of everything. Then make doctors, pharmacist and nurses take a 6% cut in pay, or an occupation tax. It will work. No worries. Free Medicare for you, you, you, you, you, you, you, you, you, you, you, you, and me. We all win free medicine.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.