Democratic Primaries
Related: About this forumWarren Wealth Tax Could Slow Economy, Early Analysis Finds
WASHINGTON Senator Elizabeth Warrens proposed wealth tax would slow the United States economy, reducing growth by nearly 0.2 percentage points a year over the course of a decade, an outside analysis of the plan estimates.
The preliminary projection from the Penn Wharton Budget Model, which will be unveiled on Thursday in Philadelphia, is the first attempt by an independent budget group to forecast the economic effects of the tax that has become a centerpiece of Ms. Warrens campaign for the Democratic presidential nomination.
The assessment found that if the tax raised as much new federal revenue as Ms. Warren intends, and if the proceeds went toward reducing the federal debt, annual economic growth would slow from an average of 1.5 percent to an average of just over 1.3 percent over a decade.
To put the finding in context: Penn Wharton estimated in 2017 that President Trumps tax cut would increase economic growth by roughly 0.06 percentage points per year over a decade, an effect that was much smaller than White House officials predicted. Its estimate of Ms. Warrens policy implies the wealth tax would have an effect that is three times as large as the Trump tax cuts but in the opposite direction.
https://www.nytimes.com/2019/11/14/business/warren-wealth-tax-economy.html?smid=tw-nytimes&smtyp=cur
primary today, I would vote for: Joe Biden
Thekaspervote
(32,765 posts)primary today, I would vote for: Joe Biden
evertonfc
(1,713 posts)It may be good. It may be bad. It's a GE loser so I'm not sure why we debate it. It's not going to be implemented anyway.
primary today, I would vote for: Joe Biden
BeyondGeography
(39,374 posts)primary today, I would vote for: Undecided
Quixote1818
(28,932 posts)We know how the economy did when FDR taxed the crap out of the wealthy and injected it back into the middle class and the economy. He created the strongest middle class in the history of the country.
primary today, I would vote for: Joe Biden
BeyondGeography
(39,374 posts)They debunk their own headline in the story. But the headline lives. It will look nice in an anti-Warren ad with a NYT sourceline under it.
primary today, I would vote for: Undecided
Quixote1818
(28,932 posts)I'm kinda stunned at seeing this here.
primary today, I would vote for: Joe Biden
backtoblue
(11,343 posts)primary today, I would vote for: Joe Biden
dawg day
(7,947 posts)and can take jobs and start businesses without worrying about whether they'll be insured, and can be productive and innovative in their work because they're not constantly stressed out that they might get sick and die because for lack of insurance.
Oh, right, I forgot. A few dozen billionaires are much more important to our economy than 200 million workers.
primary today, I would vote for: Joe Biden
AncientGeezer
(2,146 posts)so long it would have little to zero impact.
I don't see how a specific tax bracket can be targeted like that, "Wealth Tax"...and factor in the current SCOTUS make-up....
primary today, I would vote for: Undecided
judeling
(1,086 posts)I understand why Penn decided to isolate the analysis to deficit reduction as it is a pure taxes cost.
But Warren's proposal is premised on active economic utilization of the receipts. It must be paired with at least one or more of the proposals it is designed to support.
The economic benefits of the tax is not in the tax but in how the money is used.
primary today, I would vote for: Undecided
Buzz cook
(2,471 posts)If Warren's wealth tax funded something other than it is meant to fund, the effect would be X.
Student debt, early childhood education, child care. Those are among the things the wealth tax is meant to fund. That would put billions into the economy.
The Clinton tax cut and tax hike stimulated the economy by putting more money in the hands of the working class and middle class. This will do the same thing.
primary today, I would vote for: Undecided
Turbineguy
(37,324 posts)But maybe we can come up with a better one. Like charging employers for the welfare benefits their lower paid employees need.
The important thing is it's being thought about.
There are really lots of ways to do social engineering to bring more equity to our economic system.
The bifurcation of the current system is getting worse.
primary today, I would vote for: Joe Biden
Quixote1818
(28,932 posts)primary today, I would vote for: Joe Biden
pat_k
(9,313 posts)That makes absolutely no sense.
And what about the boost in Federal spending?
Increasing social safety net boosts the overall economy.
I thought the Penn Wharton Model had some validity. Either this is missing key inputs, or the model has some problem.
primary today, I would vote for: Undecided
LAS14
(13,783 posts)primary today, I would vote for: Joe Biden