The study found that the Warren wealth tax could cost workers $1.2 trillion in lost earnings over ten years and Sanders’ proposal could cost them $1.6 trillion over the same period of time.
January 10, 2020
Wealth Tax Proposed By Democrats Could Cost American Workers Trillions, According To New Study
Leading 2020 Democratic presidential candidates – including Bernie Sanders and Elizabeth Warren – are campaigning on a so-called “wealth tax” to fund their massive spending plans. They claim that it would only affect a small number of wealthy Americans, but a new study from the American Action Forum suggests otherwise.
AAF: Ostensibly, these taxes would impose the burden of government expansion on a small number of wealthy individuals. In reality, however, the disincentives created by the wealth tax would shift the burden of the tax away from its narrow base to affect the entire economy, as this study demonstrates.
The study found that the Warren wealth tax could cost workers $1.2 trillion in lost earnings over ten years and Sanders’ proposal could cost them $1.6 trillion over the same period of time. Contrary to their claims, these proposals would effectively impose a 63-cent tax on American workers for every dollar the federal government would raise in revenue from the wealthy.
There are many ways to raise revenue, and many of these are highly progressive. This examination of the potential effects of the Warren and Sanders wealth tax proposals suggests, however, that the impact of a tax targeting much of the economy’s investable capital imposes a disproportionate burden on workers.
This is just the latest evidence of the devastating consequences of the Democrats’ tax proposals. In stark contrast, conservative reforms have resulted in a historically strong economy, skyrocketing wages, and the lowest unemployment rate in decades.