New Nonpartisan Report Destroys Warren's Wealth Tax Math
As Fox News reports:
A nonpartisan academic study concludes that Democratic presidential candidate Sen. Elizabeth Warren’s proposed "wealth tax" on the richest Americans would bring in at least $1 trillion less than the populist lawmaker from Massachusetts estimates.
Warren’s signature "wealth tax" – which she says would help pay for progressive plans including universal child care, free tuition at public universities and colleges and her government-run "Medicare-for-all" health care system – would place a 2 percent tax on those worth $50 million or more and 6 percent on those worth more than $1 billion.
A University of Pennsylvania Penn Wharton Budget Model – which offers nonpartisan analysis of public policy proposals – estimates, though, that Warren’s tax would raise between $2.3 trillion to $2.7 trillion over a decade. That’s as much as $1.4 trillion less than the Warren campaign’s estimates. The analysis was released on Thursday.
It also concludes that the new taxes would cause the economy to contract between 0.9 percent and 2.1 percent by 2050 -- depending on how the new revenue is spent. The model says the new tax would reduce "private capital formation" enough to drive the U.S. economy's average wage down between 0.9 percent and 2.3 percent, even affecting households not rich enough to qualify for the tax.
It seems that Warren's math just doesn't add up, which isn't surprising considering the influence reheated socialist ideas have had on her campaign's policy proposals.
Historically socialism failed, and with math like this Warren's campaign is likely to share the same fate.