It Turns Out Warren Really Miscalculated Her Beloved and Unconstitutional Wealth Tax

|
|
Posted: Dec 13, 2019 11:45 AM
It Turns Out Warren Really Miscalculated Her Beloved and Unconstitutional Wealth Tax

Source: AP Photo/John Bazemore

Sen. Elizabeth Warren (D-MA) wants to scalp the rich if she’s elected president. She’s trying to be the anti-Trump with a brand of left-wing populism that codifies envy like no other. Now, that’s along with gutting private health insurance to ensure her forced government-run health care scam works, which will lead to the destruction of 150+ million health care plans. Yes, Warren and her ilk will take away your stuff and replace it with shoddier government health care garbage that could sink Democrats electorally for the next two generations, but I don’t want to take that bet.   

As for taxes, her wealth tax proposal isn’t new. The Europeans did it. It failed. Fellow 2020 candidate Andrew Yang has mentioned the wealth tax failure in the debates. Still, Warren says the revenue from this tax will fund all the things. The problem is that it won’t. A new study showed that this proposal is a huge torpedo for the economy, driving down GDP, killing wages, and bringing $1 trillion less than what Warren is campaigning for on the trail. Yeah, it’s left-wing nonsense, just like how she thinks the middle-class won’t be taxed for her $50 trillion health care plan (via CBS News):

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 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.

House Democrats weren’t warm to this idea in times past. Moreover, the wealth tax is probably unconstitutional. It’s part of the pie-in-the-sky syndrome that has infected the 2020 Democratic agenda. I’m not complaining. These ideas get punished at the polls. Just look at what happened to the UK Labour Party last night. You can bury this proposal at Wounded Knee.