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brooklynite

(93,878 posts)
Thu Nov 14, 2019, 12:21 PM Nov 2019

Warren Wealth Tax Could Slow Economy, Early Analysis Finds

New York Times

WASHINGTON — Senator Elizabeth Warren’s proposed wealth tax would slow the United States economy, reducing growth by nearly 0.2 percentage points a year over the course of a decade, an outside analysis of the plan estimates.

The preliminary projection from the Penn Wharton Budget Model, which will be unveiled on Thursday in Philadelphia, is the first attempt by an independent budget group to forecast the economic effects of the tax that has become a centerpiece of Ms. Warren’s campaign for the Democratic presidential nomination.

The assessment found that if the tax raised as much new federal revenue as Ms. Warren intends, and if the proceeds went toward reducing the federal debt, annual economic growth would slow from an average of 1.5 percent to an average of just over 1.3 percent over a decade.

To put the finding in context: Penn Wharton estimated in 2017 that President Trump’s tax cut would increase economic growth by roughly 0.06 percentage points per year over a decade, an effect that was much smaller than White House officials predicted. Its estimate of Ms. Warren’s policy implies the wealth tax would have an effect that is three times as large as the Trump tax cuts — but in the opposite direction.
If I were to vote in a presidential
primary today, I would vote for:
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28 replies = new reply since forum marked as read
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Warren Wealth Tax Could Slow Economy, Early Analysis Finds (Original Post) brooklynite Nov 2019 OP
Ugh... pfeiffer Nov 2019 #1
Yes, slow it's decimation of hope for the 99% OhNo-Really Nov 2019 #2
+1 CentralMass Nov 2019 #4
NYTimes is becoming Putin's Paper imho OhNo-Really Nov 2019 #9
What abject nonsense. tritsofme Nov 2019 #16
Thank you! whathehell Nov 2019 #26
By itself, the wealth tax might slow the economy, but combined with M4A and student debt relief Fiendish Thingy Nov 2019 #3
Wait. What? Hassin Bin Sober Nov 2019 #5
Yeah. Bullshit assumption to produce desired outcome. Voltaire2 Nov 2019 #12
Only one piece of the picture olsondr Nov 2019 #6
You know I never see any plans plans of other candidates scrutinized like Warren's. flying_wahini Nov 2019 #7
Right you are Bradshaw3 Nov 2019 #20
Pathetic, pointless hit job BeyondGeography Nov 2019 #8
They are very good at only giving one piece of the puzzle. vsrazdem Nov 2019 #10
They know it's crap BeyondGeography Nov 2019 #11
Wharton? Isn't that the place that gave drumpf a degree? Bradshaw3 Nov 2019 #13
Have no fear, Biden is here BeyondGeography Nov 2019 #14
Why does the top 1% and top 400 families pay a lower rate than middle class under his plan? Hassin Bin Sober Nov 2019 #17
If that is correct information backtoblue Nov 2019 #18
Wow, Biden's top tax rate isn't much different than drumpf's Bradshaw3 Nov 2019 #19
That graph looks pretty fundraiser-friendly to me BeyondGeography Nov 2019 #21
Oh no you'll be asked if you're saying he can be bought Bradshaw3 Nov 2019 #22
To say the least! Hassin Bin Sober Nov 2019 #23
K&R backtoblue Nov 2019 #15
A preliminary dynamic analysis of the Warren wealth tax from Penn Wharton finds it would reduce GDP Gothmog Nov 2019 #24
That's the same article melman Nov 2019 #25
Bazinga! George II Nov 2019 #28
Reminder! Newest Reality Nov 2019 #27
 

pfeiffer

(280 posts)
1. Ugh...
Thu Nov 14, 2019, 12:28 PM
Nov 2019

See?!? There you go...

If I were to vote in a presidential
primary today, I would vote for:
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OhNo-Really

(3,985 posts)
2. Yes, slow it's decimation of hope for the 99%
Thu Nov 14, 2019, 12:29 PM
Nov 2019

Warren’s is a simple ask:

Return to the progressive tax that created the post WWII egalitarian Middle Clasd.

Ffs even Nixon created Rent Control, EPA, and maintained the successful progressive tax rates.

I hope Dems drive a stake into the heart of the Grover Norquist bullshit no tax kill the government USSR sponsored overt war on The United States

Bring it on Elizabeth!

If I were to vote in a presidential
primary today, I would vote for:
Joe Biden
 

OhNo-Really

(3,985 posts)
9. NYTimes is becoming Putin's Paper imho
Thu Nov 14, 2019, 12:43 PM
Nov 2019
If I were to vote in a presidential
primary today, I would vote for:
Joe Biden
 

tritsofme

(17,325 posts)
16. What abject nonsense.
Thu Nov 14, 2019, 02:57 PM
Nov 2019
If I were to vote in a presidential
primary today, I would vote for:
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Fiendish Thingy

(15,369 posts)
3. By itself, the wealth tax might slow the economy, but combined with M4A and student debt relief
Thu Nov 14, 2019, 12:29 PM
Nov 2019

Warren's policies could likely be a boost to the economy, with the average person having $11,000 more per year due to reduced health care costs.

Add in reduced student debt and reduced child care costs, and we're talking about billions more injected into the economy each year.

But I'm sure the billionaires and hedge fund managers would front load the negative impact, possibly dragging the economy into recession (which is overdue anyway).

If I were to vote in a presidential
primary today, I would vote for:
Undecided
 

Hassin Bin Sober

(26,273 posts)
5. Wait. What?
Thu Nov 14, 2019, 12:30 PM
Nov 2019
The assessment found that if the tax raised as much new federal revenue as Ms. Warren intends, and if the proceeds went toward reducing the federal debt, annual economic growth would slow from an average of 1.5 percent to an average of just over 1.3 percent over a decade.



Umm, unless I missed something, that money won’t go to reduce debt. Put it on the street and see what it does to GDP. Oh but if we do that the GDP hawks will cry moral hazard! and *gasp* INFLATION.!1! Ohmygerd!

Increase food stamps and erase student loans and increase social security if you are so worried about GDP.
If I were to vote in a presidential
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Undecided
 

Voltaire2

(12,629 posts)
12. Yeah. Bullshit assumption to produce desired outcome.
Thu Nov 14, 2019, 12:59 PM
Nov 2019

Typical.

If I were to vote in a presidential
primary today, I would vote for:
Undecided
 

olsondr

(12 posts)
6. Only one piece of the picture
Thu Nov 14, 2019, 12:32 PM
Nov 2019

What this article doesn't specify is the impact of her other policies. The wealth tax revenue isn't just going to disappear, it's going to be used for green jobs, student debt forgiveness, affordable health care initiatives, infrastructure. All of those will impact the economy positively, perhaps significantly so. That should be included in the "study."

When taken in totality, Warren's policies will improve this nation in many ways, maybe not all economic, but improvements nonetheless.

If I were to vote in a presidential
primary today, I would vote for:
Undecided
 

flying_wahini

(6,529 posts)
7. You know I never see any plans plans of other candidates scrutinized like Warren's.
Thu Nov 14, 2019, 12:33 PM
Nov 2019


Oops, maybe they don’t have any.
If I were to vote in a presidential
primary today, I would vote for:
Joe Biden
 

Bradshaw3

(7,455 posts)
20. Right you are
Thu Nov 14, 2019, 05:24 PM
Nov 2019

On both counts. Candidates who offer other people's plans as their own or few proposals get a pass while her plans are gone over and deemed unworkable - by those with a vested interest.

If I were to vote in a presidential
primary today, I would vote for:
Joe Biden
 

BeyondGeography

(39,284 posts)
8. Pathetic, pointless hit job
Thu Nov 14, 2019, 12:38 PM
Nov 2019
Mr. Zucman said in an interview that the analysis did not take into account Ms. Warren’s spending plans, which he said would most likely bolster savings, investment and labor-force participation — and, with them, growth.

“If the government collects $3 trillion in wealth tax revenue, and spends $3 trillion on public infrastructure,” he said, “it’s unclear that there should be a reduction” in the amount of overall investment in the economy.

Another economist who has evaluated Ms. Warren’s plans at her request, Mark Zandi of Moody’s, wrote on Wednesday that his analyses suggested that her spending on “child care, housing and green manufacturing would spur economic growth and produce more tax revenue.”



If I were to vote in a presidential
primary today, I would vote for:
Undecided
 

vsrazdem

(2,176 posts)
10. They are very good at only giving one piece of the puzzle.
Thu Nov 14, 2019, 12:49 PM
Nov 2019
If I were to vote in a presidential
primary today, I would vote for:
Undecided
 

BeyondGeography

(39,284 posts)
11. They know it's crap
Thu Nov 14, 2019, 12:55 PM
Nov 2019

As evidenced by the quotes from Zucman et al. They just wanted to get that headline into the ether.

If I were to vote in a presidential
primary today, I would vote for:
Undecided
 

Bradshaw3

(7,455 posts)
13. Wharton? Isn't that the place that gave drumpf a degree?
Thu Nov 14, 2019, 01:37 PM
Nov 2019


When I see these and other postings, some days I wonder if I'm on a Democratic forum. Between the tears spilled for billionaires, the praise for private insurance and the promotions for Amazon and Facebook, it makes me long for the good old days of 2008 when we all agreed healthcare was broken and Wall Street needed to be be reined in.
If I were to vote in a presidential
primary today, I would vote for:
Joe Biden
 

BeyondGeography

(39,284 posts)
14. Have no fear, Biden is here
Thu Nov 14, 2019, 01:52 PM
Nov 2019
If I were to vote in a presidential
primary today, I would vote for:
Undecided
 

Hassin Bin Sober

(26,273 posts)
17. Why does the top 1% and top 400 families pay a lower rate than middle class under his plan?
Thu Nov 14, 2019, 04:11 PM
Nov 2019

Wtf?

If I were to vote in a presidential
primary today, I would vote for:
Undecided
 

backtoblue

(11,324 posts)
18. If that is correct information
Thu Nov 14, 2019, 04:26 PM
Nov 2019

I agree with your wtf.

If I were to vote in a presidential
primary today, I would vote for:
Joe Biden
 

Bradshaw3

(7,455 posts)
19. Wow, Biden's top tax rate isn't much different than drumpf's
Thu Nov 14, 2019, 05:20 PM
Nov 2019

Making sure the top 400 get to keep that much sure does fit in with trickle down economics. Again, thought that discussion was over in 2008 when we all agreed it was bad for the economy and the average person.

If I were to vote in a presidential
primary today, I would vote for:
Joe Biden
 

BeyondGeography

(39,284 posts)
21. That graph looks pretty fundraiser-friendly to me
Thu Nov 14, 2019, 05:54 PM
Nov 2019
If I were to vote in a presidential
primary today, I would vote for:
Undecided
 

Bradshaw3

(7,455 posts)
22. Oh no you'll be asked if you're saying he can be bought
Thu Nov 14, 2019, 07:29 PM
Nov 2019

Alert-bait some like when this issue comes up. I will say those Wall Street types seem to make up an outsized portion of his constituency, based on their numbers.

If I were to vote in a presidential
primary today, I would vote for:
Joe Biden
 

Gothmog

(144,005 posts)
24. A preliminary dynamic analysis of the Warren wealth tax from Penn Wharton finds it would reduce GDP
Fri Nov 15, 2019, 04:10 PM
Nov 2019
If I were to vote in a presidential
primary today, I would vote for:
Joe Biden
 

melman

(7,681 posts)
25. That's the same article
Fri Nov 15, 2019, 04:14 PM
Nov 2019
If I were to vote in a presidential
primary today, I would vote for:
Undecided
 

Newest Reality

(12,712 posts)
27. Reminder!
Fri Nov 15, 2019, 04:40 PM
Nov 2019

Regardless of the spin on the ideas about the wealthy and their social obligations to OUR system and what WE provide in order for THEM to prosper:

WE are the economy as a majority. Let's never forget that because, it seems, there is a weighted effort to continue to spotlight them as being superlative and more important members of OUR collective, social system.

Without us, they have no economy, government structure, safety, infrastructure, etc., etc. The self-made delusion is now a myth that is the equivalent of unicorns and leprechauns, (my apologies to any unicorns or leprechauns).

If this system were a pyramid, (which is really symbolic of a paternalistic hierarchy in many cases, but still useful) WE hold it up. It rests on our shoulders and its four corners rely on us to support it, all the way up. It is all interdependent and that still seems to be ignored and overlooked as a vital aspect of how we need to transform our view of social reality quickly. We are already learning this the hard way because climate change and pollution are now showing us, first hand and mercilessly, how the idea of being independent from the rest of the World works out in the end. Nobody is an island in that respect.

If I were to vote in a presidential
primary today, I would vote for:
Undecided
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