article: https://www.nytimes.com/2019/11/10/business/economy/warren-billionaires-wealth-tax.html
Elizabeth Warren's new tax proposals are probably the single largest proposed tax hike on the mega wealthy in American history, or at the least since Reagan's tax cuts in the 80s. She plans to raise taxes on America's one percent, thereby increasing government revenue from taxes by a significant margin. The hope is that this will help hold the mega wealthy accountable for their fair share of taxes, and work on the growing income inequality in the United States. Naturally, this tax plan has a lot of opponents. Many of the opponents argue that this will limit growth, however Warren argues that by making the billionaires pay out some of their savings towards taxes it will actually make money circulate through the economy more. What do you think the affect of this tax plan will have on the economy?
This plan in theory would be very effective because the Government spending multiplier would cause GDP to rise faster than the simple consumer spending would. However, the key to this actually working is that American government doesn't put 100% of tax revenue back into the economy. The key to this tax plan being effective will be based on how the tax revenue is allocated.
ReplyDeleteA wealth tax is certain to be a very divisive issue in this country. I read that she wanted to tax 30 cents on the dollar on those earning 50 million and above. I think a better idea would be to focus on the capital gains tax to make the economy better and the country more equal.
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