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De Omnibus Dubitandum - Lux Veritas

Monday, January 28, 2019

Elizabeth Warren proposes 'wealth tax' on the very rich

January 25, 2019 By Rick Moran

Senator Elizabeth Warren is proposing a "wealth tax" on Americans with more than $50 million in total assets. She is advocating for a 2% tax on those worth more than $50 million and 3% on those with a billion dollars or more in assets.

National Review:
“The Warren wealth tax is pretty big. We think it could have a significant effect on wealth concentration in the long run,” Saez told the Post. “This is a very interesting development with deep root causes: The fact inequality has been increasing so much, particularly in wealth, and the feeling our current tax system doesn’t do a very good job taxing the very richest people.”
The proposal seeks to address the tax evasion that fiscal conservatives argue would reduce the efficacy of any wealth tax by allocating additional resources to the IRS, imposing a one-time penalty on Americans who renounce their citizenship to avoid the tax, and requiring that a certain percentage of those affected by the tax undergo a yearly audit.

The proposal is supposed to raise $2.75 trillion over 10 years, or about 10% of the "Medicare for All" proposal Democrats have been floating. I will believe it when I see it. The grandiose "projections" for how much revenue these taxes on the super rich will raise are always spectacularly off. When France passed a wealth tax in 2012, they projected income from the measure to be 30 billion euros. They got 14 billion, which left a gaping hole in their budget. Besides the dubious chances for success, it may be that such a tax would be unconstitutional:..........To Read More...

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