by Mitch Kokai
Senior Political Analyst, John Locke Foundation
Senator and presidential contender Elizabeth Warren (D-Mass) has proposed rolling back the tax cuts implemented by the Trump administration in 2018 and imposing an “ultra-millionaire tax,” an “excessive Lobbying Tax,” and an increased tax on gun manufacturers.”
She claims these new taxes will ultimately serve the purpose of financing “universal childcare, student loan debt relief, and down payments on a Green New Deal and Medicare for All.”
“As the wealthiest nation in the history of the world,” Warren’s campaign webpage says, “We can make investments that create economic opportunity, address rural neglect, and a legacy of racial discrimination — if we stop handing out giant tax giveaways to rich people and giant corporations and start asking the people who have gained the most from our country to pay their fair share.”
Warren has become known for her proposal of an “ultra-millionaire tax”, which would apply a two-percent tax per dollar to “families with a net worth of $50 million or more.” Additionally, if a household has a net worth above $1 billion, it would face a tax of three percent. Warren says in her estimates that these changes would bring in “$2.75 trillion in revenue over a ten-year period.”
The New York Times posted an article that said “left-leaning economists have expressed their own doubts about a wealth tax.” The article cited an analysis by Lawrence Summers, the Treasury Secretary under Bill Clinton, and Natasha Sarin, a law professor.