Elizabeth Warren’s Wealth Tax Would Raise At Least $1 Trillion Less Than She Claims

Elizabeth Warren has staked her “I have a plan for that” campaign moniker on the ability of her wealth tax to pay for her proposals. In addition to plenty of previous skepticism that the wealth tax would accomplish what she claimed, a new academic study estimates that Warren’s new tax would raise 30% less than her campaign advertises. 

AP: “Elizabeth Warren’s signature “wealth tax” would bring in at least $1 trillion less in new government revenue than the Democratic presidential candidate estimates”

The study also estimates that Warren’s wealth tax will cause the economy to contract and wages to decrease. Most alarming is that Warren’s tax would even negatively impact families whose wealth is less than what would qualify them for the tax.

AP: “It also concludes that the new taxes would cause the economy to contract between 0.9% and 2.1% 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% and 2.3%, even affecting households not rich enough to qualify for the tax.”

Warren’s rise in the polls is over and its timing is no coincidence. Voters are just starting to learn how thin Warren’s plans are, how she’s lied for political gain, and about her lucrative work for big corporations. Expect the backlash to continue as she struggles to regain the momentum that once made her a frontrunner. 

More Wealth Tax scrutiny…

• Larry Summers in the Washington Post: Be very skeptical about how much revenue Elizabeth Warren’s wealth tax could generate
• FiveThirtyEight: Warren’s Wealth Tax Isn’t The Slam Dunk Progressives Want It To Be
• James Freeman in the Wall Street Journal: Elizabeth Warren’s Unconstitutional Wealth Tax
• Associated Press: Too rosy? Experts question Warren’s wealth tax figures