Democratic Primaries
Related: About this forumWarren Wealth Tax Could Slow Economy, Early Analysis Finds
New York TimesThe 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. Warrens 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 Trumps 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. Warrens 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.
primary today, I would vote for: Joe Biden
pfeiffer
(280 posts)See?!? There you go...
primary today, I would vote for: Joe Biden
OhNo-Really
(3,985 posts)Warrens 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!
primary today, I would vote for: Joe Biden
CentralMass
(15,265 posts)primary today, I would vote for: Undecided
OhNo-Really
(3,985 posts)primary today, I would vote for: Joe Biden
tritsofme
(17,325 posts)primary today, I would vote for: Joe Biden
whathehell
(28,969 posts)Go Liz!
primary today, I would vote for: Joe Biden
Fiendish Thingy
(15,369 posts)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).
primary today, I would vote for: Undecided
Hassin Bin Sober
(26,273 posts)Umm, unless I missed something, that money wont 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.
primary today, I would vote for: Undecided
Voltaire2
(12,629 posts)Typical.
primary today, I would vote for: Undecided
olsondr
(12 posts)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.
primary today, I would vote for: Undecided
flying_wahini
(6,529 posts)Oops, maybe they dont have any.
primary today, I would vote for: Joe Biden
Bradshaw3
(7,455 posts)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.
primary today, I would vote for: Joe Biden
BeyondGeography
(39,284 posts)If the government collects $3 trillion in wealth tax revenue, and spends $3 trillion on public infrastructure, he said, its unclear that there should be a reduction in the amount of overall investment in the economy.
Another economist who has evaluated Ms. Warrens plans at her request, Mark Zandi of Moodys, 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.
primary today, I would vote for: Undecided
vsrazdem
(2,176 posts)primary today, I would vote for: Undecided
BeyondGeography
(39,284 posts)As evidenced by the quotes from Zucman et al. They just wanted to get that headline into the ether.
primary today, I would vote for: Undecided
Bradshaw3
(7,455 posts)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.
primary today, I would vote for: Joe Biden
BeyondGeography
(39,284 posts)primary today, I would vote for: Undecided
Hassin Bin Sober
(26,273 posts)Wtf?
primary today, I would vote for: Undecided
backtoblue
(11,324 posts)I agree with your wtf.
primary today, I would vote for: Joe Biden
Bradshaw3
(7,455 posts)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.
primary today, I would vote for: Joe Biden
BeyondGeography
(39,284 posts)primary today, I would vote for: Undecided
Bradshaw3
(7,455 posts)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.
primary today, I would vote for: Joe Biden
Hassin Bin Sober
(26,273 posts)primary today, I would vote for: Undecided
backtoblue
(11,324 posts)primary today, I would vote for: Joe Biden
Gothmog
(144,005 posts)primary today, I would vote for: Joe Biden
melman
(7,681 posts)primary today, I would vote for: Undecided
George II
(67,782 posts)primary today, I would vote for: Joe Biden
Newest Reality
(12,712 posts)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.
primary today, I would vote for: Undecided