Elizabeth Warren’s Plan: Tax the Wealthy Because They’re Wealthy – NTK Network Elizabeth Warren’s Plan: Tax the Wealthy Because They’re Wealthy

Elizabeth Warren’s Plan: Tax the Wealthy Because They’re Wealthy

In addition to taxing income, the Massachusetts Democrats wants to tax the wealthy simply for having money.

By NTK Staff | 01.25.2019 @10:00am
Elizabeth Warren’s Plan: Tax the Wealthy Because They’re Wealthy

Sen. Elizabeth Warren (D-MA) teamed up with two Berkeley economists to unveil her latest policy proposal: tax the wealthy for having money.

It’s the latest move in which Warren appears to be modeling her campaign after the policies put forward by freshman Rep. Alexandria Ocasio-Cortez (D-NY), who recently proposed a 70% tax on the wealthy to fund her climate change plan.

Here’s how Warren’s plan would work:

The proposal — which would create a 2 percent wealth tax on those with a net worth above $50 million and impose an additional 1 percent on net worth above $1 billion — draws from an analysis by University of California-Berkeley economists Emmanuel Saez and Gabriel Zucman, who have been consulting with Warren on the matter.

“We estimate that about 75,000 American households (less than 0.1%) would be liable for the wealth tax and that the tax would raise around $2.75 trillion over the ten-year budget window 2019-2028, of which $0.3 trillion would come from the billionaire 1% surtax,” Saez and Zucman wrote in a Jan. 18 letter to Warren, obtained by POLITICO.

The entire aim of the proposal is to “curb the growing concentration of wealth” among Americans, according to the two Berkeley economists.

Warren has not formally rolled out this policy, but details of the plan became public on Thursday when the Washington Post reported on it.

Yale economics professor and Nobel laureate Robert Shiller threw cold water on the entire idea during remarks at the World Economic Forum in Davos, Switzerland on Friday.

“There is a problem with the wealth tax,” Shiller, economics professor at Yale University, told Bloomberg Television’s Francine Lacqua and Tom Keene on the sidelines of the Forum on Friday. “People leave, they take their business elsewhere.”

Earlier this week, Ocasio-Cortez’s 70 percent tax drew laughs from a Davos audience when the policy was posed to Dell Technologies CEO Michael Dell.

“I don’t think it would help the growth of the U.S. economy,” he said on Wednesday.

Sign Up

for NTK updates every week.


View Privacy Policy