Economics

Warren’s Wealth Tax May Fall $1 Trillion Short, Study Finds

  • Taxpayers will avoid tax, Penn Wharton Budget Model says
  • Warren’s campaign estimates the tax will raise $3.75 trillion

Elizabeth Warren 

Photographer: Daniel Acker/Bloomberg
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Senator Elizabeth Warren is overestimating the proceeds of her wealth tax by at least $1 trillion, according to a new study, raising questions about the Democratic presidential candidate’s plans to fund her sweeping proposals to reshape the U.S. economy.

Warren’s tax would raise $2.3 trillion to $2.7 trillion over a decade, far short of the $3.75 trillion her campaign has said the levy on the accumulated wealth of millionaires and billionaires would raise in that period, according to new estimates from the Penn Wharton Budget Model.