Warren's wealth tax will generate $1 trillion less than she claims, study finds

CBS News ^ | December 12, 2019 | BY AIMEE PICCHI

[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.

[Still Thinking]

Wait, so the socialists are now going to tax us LESS than they claim they’re going to? Sly bastards....they’ll try anything

[Still Thinking]

Geez, what do you have against Wiccans, comparing them to politicians!

[catnipman]

“Warren has proposed imposing a 2% surcharge tax on wealth of $50 million or more, with the rate rising to 6% on billionaires”

there’s no Constitutional authority to seize private property like this ... just like the income tax, a so-called wealth tax would require a Constitutional amendment ...

[Seruzawa]

Oh crap. You’re right that was unfair of me.

[Vinnie]

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.

Estimates for Medicare For All run $24.7 T to $54 T over 10 yrs.

$2.7 T tax on 'the rich' doesn't begin to cover it. Maybe 10% ?
Who pays the rest??
Guess who, us.!