Warren’s Wealth Tax Would Hurt U.S. Investors
The tax also has the potential to change the nature of U.S. entrepreneurship — and not for the better.
Economists have a warning for her.
Photographer: Martina Albertazzi/Bloomberg
According to Elizabeth Warren, economists who say that her proposed wealth tax would stifle investment and growth are “just wrong.” Leaving aside the question of whether economic projections, which by definition require assumptions about future human behavior, can be right or wrong, it is true that her proposal has spurred a vigorous debate among economists. A lot of the points they make do not bode well for her plan.
There is widespread skepticism about whether the tax would raise the revenue its proponents suggest, for example. Meanwhile, one comprehensive budget model estimates that Warren’s proposal would shrink the U.S. economy by between 0.9% and 3.5%.