Opinion: Elizabeth Warren Doesn’t Understand Taxes, How They Damage Economy
Massachusetts Senator and 2020 presidential hopeful Elizabeth Warren wants to help the poor and do something about growing wealth inequality in the U.S., which is commendable in and of itself.
Senator Warren’s proposals rely on a fundamentally misleading use of inequality as a political weapon.
But she’s going about it all wrong by proposing economically damaging forms of taxation, writes the National Review’s Jon Hartley, an economics writer and researcher with interests in labor economics, public economies, financial economies and macroeconomics, according to his bio.
Warren has proposed a 7% corporate tax on U.S. companies that make more than $100 million each year, and the goal is to raise $1 trillion in revenue.
That tax of course comes on the heels of Warren’s previous proposal to levy a 2% wealth tax on people making more than $50 million and additional 1% tax on fortunes above $1 billion.
The problem, Hartley writes, is higher corporate taxes and wealth taxes are among the most inefficient ways of raising tax revenue without also harming the U.S. economy as a side effect.
Per National Review: