Sanders’s Wealth Tax Is Too Much of a Good Thing
Lofty rates will drive wealth out of the country and might not raise much revenue.
A modest proposal.
Photographer: Scott Olson/Getty Images North AmericaA wealth tax is a good idea. It attacks inequality directly while raising revenue for the government. It can be targeted toward the country’s wealthiest individuals while leaving the upper middle class alone. And by adding another layer of taxation, it can tax people who managed to avoid income taxes through clever accounting tricks or illegal evasion.
Democratic president candidate Senator Elizabeth Warren recently garnered attention for proposing a wealth tax of 2% a year on fortunes of more than $50 million, with an additional 1% surcharge for amounts over $1 billion. It was a bold, pioneering proposal — much larger than any of the similar taxes that European countries have experimented with (and mostly discarded) over the years.