Why Elizabeth Warren’s Wealth Tax Won’t Work

Why Elizabeth Warren’s Wealth Tax Won’t Work

We can’t afford just to tinker around the
edges, a tax credit here, a regulation there, our fight is for big structural change. Elizabeth Warren wants the federal government
to provide free healthcare for every American, college for every student who wants it, childcare for every parent, and housing for low income families. And she wants to pay for it all with a new
tax on the richest of the rich. She calls it the Ultra-Millionaire Tax. Skimming a bit more off the top of the bank
accounts of the ultra wealthy might sound like a good deal for working and
middle class Americans who feel like they’re falling behind. But the reality is that wealth taxes have
been tried before and they haven’t worked the way that Warren
promises. Here’s why: Warren wants to levy a 2% annual wealth tax on all households with a net worth of over
50 million dollars and a 3% annual tax on those households with
net worths over one billion dollars. All I’m asking for is a little slice from
the tippy tippy top. A 2 or 3 percent tax on multi millionaires
and billionaires might not sound like much. They got to pitch in two cents and two cents
on every dollar after that. Wealth taxes are different than other taxes
like, say, an income tax or a sales tax which tax money when it moves around. A wealth tax on the other hand taxes the same
pot of money every year. Meaning that over time it becomes smaller
and smaller. It’s essentially a tax on large savings, the money that investors and entrepreneurs
rely on to start new businesses. But I do think a system that allows billionaires
to exist when there are parts of Alabama where people
are still getting ringworm because they don’t have access to public health,
is wrong. Unlike Alexandria Ocasio Cortez, Warren has never said that the existence of billionaires is immoral but her plan to tax two to three percent of
their wealth on an annual basis is clearly motivated at least in part by a
desire to reduce their wealth and what she perceives as a power imbalance
in our society. The economists who helped Warren design her
plan have said that the idea is to make rich people
less wealthy. In analyzing her plan, they wrote that: It’s not really about raising tax revenue, it’s about using government power to make
sure rich people have less. -that much wealth is bad for our economy and
bad for our democracy. Warren has often pitched her plan as a way
to raise money from the ultra rich to pay for more government benefits for everyone
else. And on that count, it’s likely to fall short. Warren says her tax plan will raise 2.75 trillion
dollars over a ten year period. But other countries have tried wealth taxes and found that they raise far less money than
expected. In 1990, there were twelve OECD nations with
wealth taxes similar to Warren’s. Today only four remain. In Scandinavia of course healthcare is a right,
higher education is free. Despite the tendency of politicians like Bernie
Sanders to hold up Denmark and Sweden as paragons of Democratic Socialism that the
US should emulate, the reality is that both nixed their wealth
taxes in the 1990s because too many rich citizens were pulling
their money out of the country. This capital flight resulted in lower rates
of entrepreneurship and relative economic stagnation. Not only did the wealth tax hurt the economy, it didn’t even raise the money it was supposed
to. When Sweden eliminated it’s wealth tax it had virtually no effect on government finances. France tried a wealth tax for more than a
decade starting in 2000. It helped push an estimated 42000 millionaires
out of the country. They didn’t pay the tax, they just left. What Warren wants to get around the capital flight
problem by taxing the money no matter where in the
world it’s located. And imposing a 40% exit tax on anyone who
wants to renounce his or her citizenship. We’re going to be out there countin’ them
and watching them. What we built right into the plan was far
more sophisticated and more investment in the enforcement. Warren’s plan relies on hiring more IRS agents partly to deal with the complexity of evaluating
total individual wealth. But throwing more tax collectors at the problem
isn’t going to change the fact that the wealthy are very good at protecting
their money. By offshoring it or by putting it into unique,
hard to value assets like artwork. Austria is one of the countries that used
to have a wealth tax. One of the reasons the country ended it was
because the cost of enforcement was so high. Based on it’s failure in other countries and her vague proposals for addressing those
failures, there’s no compelling evidence that Warren’s
Ultra Millionaire Tax will raise the revenue she claims. The wealth tax is best understood not as a
targeted revenue raiser but as a symbolic declaration of opposition
to the existence of out sized wealth regardless of how it was obtained. What I want is I want these billionaires to
stop being freeloaders. Warren has described the Ultra Millionaire
Tax as a tool for addressing inequality. But really it’s just a presidential candidate’s
way of saying ‘I oppose the existence of very rich people’ She could have just said it.

100 thoughts on “Why Elizabeth Warren’s Wealth Tax Won’t Work

  1. No one in the comments section will be taxed by this and will benefit if passed; they like to get anally railed by corporates so long as its not da gubermint lmao

  2. When the ultra millionaire tax pays for what she wants then stagnation comes along and it’s time to bring out the ultra ultra millionaire tax and when that fails its time for the gov just to take full control over everything and say fuck it.

  3. If you’re familiar with the monkey grape experiment the problem is perceived unfairness. People don’t mind wealth inequality as long as they perceive a general sense of fairness. Warren’s solution to wealth inequality generated unfairness is ass backward, but it creates perceived fairness. We should reject warren and come up with a better a plan.

  4. Holy shit! A plan that would lead to wealthy people reinvesting their money into the economy potentially creating more jobs or paying their workers more, whilst at the same time generating money for our government to spend on social services and preventing capital flight? Damn, rejecting this plan is some fine ass libertarian logic.

  5. There aren't enough truly rich folks for this to work. The IRS's own statistics show this. And a million isn't much money now. It's what an average middle class retiree needs to retire on. Tax that every year in addition to the income tax and other taxes, and you'll compromise their retirement.

    How can wealth be bad for the economy? What a fucking dumbass clown this pseudo-Native American truly is, down to the bottom of her soul.

    This lady doesn't have the first notion of what liberty is.

  6. Eisenhower era 95% income tax on America's top 1% earners worked great in the 1950s. Rich people cannot effectively attain and maintain their wealth absent a society surrounding them that's well fed, housed, clothed, educated and medically cared for.

  7. The problem with trying to impose a 40% exit tax is the same exact problem our Government has with convicting Russian agents that interfered with the election.

    You can charge those Russian agents and indeed our Government has charged many Russian agents but they are Russian Citizens living in Russia and we have no jurisdiction over them unless they come back to the US so essentially we can't do anything to them.

    Billionaires could most definitely move their wealth out of the country before the government would be able to tax it and if they were willing to leave the US permanently then there really isn't anything the US Government could do to collect those taxes……if the billionaires are smart about how they move their money around and how they sell all their US based assets before moving.

    Unless they try to move their wealth to a country that we have treaties with which allows us to take money from banks in that country then the US would never be able to collect those exit taxes.

    If you want a massive amount of out nations wealth to leave the country try Warren's plan.

    Read Atlas Shrugged.

  8. The democraps will destroy America if we let them. Remove all lefty's and send them to the socialist paradise of their choice…by force if necessary. Democraps are degenerate scum🇺🇸

  9. President Dwight David Eisenhower, perhaps the last real Republican, had a 90 percent tax rate for the super rich during his administration.
    Eisenhower explained it this way: The super rich could avoid the high taxes by investing their money in things that make America stronger. If they wanted to avoid high taxes, he said they could invest in business expansions and higher employee wages. They could give a million or two to tax-exempt non-profits that feed, house and clothe poor people of America, among other things.

  10. Im leaving it
    As i found it.
    Take over.
    It’s yours.

    Here Lies My
    Country –
    Born – 1776

    Ill stop the motor of the world


  11. Everyone talking about what theyre gonna add but never about reforming the stuff that doesnt work. The actual minutiae of the laws they muddied up in the first place.

  12. There are many western countries who would gladly, with open arms, welcome these rich people and not penalise them for being wealthy. They would benefit from their business knowledge and entrepreneurial skills.

  13. The Netherlands still has a wealth tax in practice: they say it's taxing earnings from wealth but take a fictitious earning of 4 percent (in which it makes no difference whether you've lost money or earned 10 percent) which they tax at 30 percent which in practice is a tax of 1,2 percent on all savings above 30000 euros.

  14. What ignorant hyperbolic ADD ridden shrew…..
    She's the crazy drunk aunt at Thanksgiving dinner that won't shut up 🍗👍

  15. Her stupid ideas won’t work because no self respecting red blooded American is putting grandma Pocahontas in the White House.

  16. Is she time I George Soros and Michael Bloomberg Hillary Clinton Feinstein Nancy Pelosi Harry Reid is time at these very wealthy democrats

  17. ITS NOT FREE ANYTHING! every working (or non working) hump in this country pays tax of some kind. I have paid income tax since I had my first paper route at the age of 9. what do we get for it? roads are good, cops and firefighters are good too…what else? its high time the country pays the citizens back with something real. WHY ON EARTH is a dairy farm in Iowa or your local grocery in the health care business to begin with? the biggest job killer in this country is the shotgun wedding between work and health care…its high time someone did something about it!

  18. This is why Yang is better. A VAT works far better for the economy. And the economic growth seen from the UBI would make it so much more worth it. Socialism is when the government decides who gets what money. Capitalism is when the government gives everyone the same opportunity (aka a ubi) and the PEOPLE decide where that money goes.

  19. How can this possibly work? I'm no US tax genius, but even I can come up with a dozen ways to avoid this or which would make it so insanely difficult to come after someone that they'll spend decades trying to collect…
    1. Give it to family. If you have $100M, give $25M to your wife and two children in a trust.
    2. Give the money to someone else in trust. Prepay for a nursing home, has a trust fund for your kids education, around the world cruises in ten years, etc. You won't have the money on your books.
    3. Form companies. How is the government going to evaluate your wealth based on owning a non-publicly traded company? You are forcing the IRS to evaluate the net worth of hundreds of thousands of individual companies (which are shells each just holding other companies, realty, physical assets, etc.) each year. Lie about their net worth (or just don't know) and then let the IRS evaluate all this over and over. Likewise, you can structure the company such that is it losing money so typical evaluation methods such as 10x income become meaningless.
    4. Form companies outside of the US. Now… good luck on evaluating the value of a company in Canada, Russia, or China.
    5. Lend the money to someone with a set payback date. You don't have the money. It isn't a negotiable commodity. Again, hard to evaluate it. All sorts of things such as maxing out pensions,
    6. Put the money into physical assets and hide them. Diamonds, gold, art work, etc. and put it in your basement or ship it overseas. Likewise invest in physical assets overseas which aren't easily valued.
    7. Non-cash payment. Once you reach the $50M (or whatever), just don't accept payment in wealth. If your are working as a CEO, say you want to be paid in something other than physical assets — the company will hire a dozen people and come out to maintain your house, teach your kids, free plane tickets, concerts, 25 year home leases, etc.
    8. Barter. IRS is going to have a massive time evaluating anything if you trade your services as an doctor in return for a boat.
    9. Mask bartter transfers through complex deals. I'd trade you a hip replacement for a five year lease on a car through a shell company which then rents the car back to you for 1/4 the price. Give the IRS a hundred deals like this, and they will have no way of knowing your current net work.
    10. Stop working. As you approach $40M… stop working. Lay off everyone, end your business. Left them find another doctor.
    11. Stop all charity donations. Switch all political donations to the Republicans. How many democrat billionaire are going to pay 20% of their wealth over 10 years? Pay lawyers to sue the IRS over and over. Lobby for loopholes.
    12. Leave the United States. She might think the IRS can track you down overseas, but you can renounce your citizenship and other countries (besides being massively happy someone in brining in billions of dollars to invest in their country) are not going to honest any IRS audit/information requests on any of their citizens. Take the money out long before they implement any rules (which would take a year or more to pass).

  20. jokes on her most of the billionaires and multimillionaires money and savings are pretty much untouchable so lol ya good luck with that

  21. Why don't you tell us what will work? Because this "corrupt winner takes all and fuck every other hard working American" situation the country finds itself is a far worse option for most Americans. Let the corporations leave to other countries if they don't want to pay taxes, I'd rather not have pharmaceutical companies price gouging everybody anyways, because the countries that import from these same companies get their drugs far cheaper, we'll be better off importing too.

  22. If AOC is worried about people with ring worms, why won't she just let some of them in her house n look after them.. she earns more than 150k$ a month .. can't she spend 100k$ on homeless n live off 50k$ ??

  23. Capital flight destroyed two countries economies in the same decade mexico and thailand look in to it china and hong kong are probably next because of it.

  24. Did this fuckface just say someone worth 50M will never make any more money? Buncha incels watch this channel

  25. If such a plan is implemented, it will seriously damage this country. Capital flight, and creative schemes to legally avoid paying this tax will force the government to become even more burdensome in their effort to collect the tax. However, whenever we have the next recession, this type of tax-the-rich talk will gain more traction. And that is unfortunate.

  26. Eureka, I've got it: the penny tax on the ultra super duper richy rich. Just a mere penny (on every penny of income) for those with income over $50mil (divided by 50). Who can dare oppose a mere penny to SAVE LIVES! This simple, mere penny tax will eliminate poverty (like LBJ did), eliminate all crime, and increase the lifespan to 205 years. Isn't it worth trying if it saves even A SINGLE LIFE! What could go wrong.

  27. It's interesting the photo of a mansion to depict the wealthy. No mansions equals no work for carpenters, bricklayers, landscapers, carpet installers, tile installers, truck drivers, electricians, plumbers, home theater installers, and on and on and on.

  28. That woman Crazy, im low income, working my way to mid income, and i dont think it is right. start teaching low income people with a ged/high school diploma , to keep it in there pants, until they can afford it.

  29. The rich are freeloaders? Don’t they pay like a ridiculous amount in taxes? The poor actually get their money back each year which means the poor are freeloaders.

  30. Keep running on this. Please keep it up. That face, these traitorous words coming out of it. It's gonna be a MAGA landslide.

  31. What needs to be understood is that the left aren't good people. All of them, from the top down, are despots in waiting. They want to provide for you from cradle to grave, and all you need to give up in exchange is anything remotely similar to individual liberty.

  32. This woman is mathematically challenged, so unrealistic. She makes being poor so much more appealing than being next to poor.

    This is so un-American and sad, please someone post the numbers, if you get free child care, free health care, free education BUUUUT if you make some money (not sure the line) you get none of that. So let’s just say I’m going to get real poor real fast because it pays to be poor with this woman.

    Yang’s UBI addresses this inequality and has mathematically proven to be the stronger candidate.

  33. DON'T the very rich make their $$$$$ work for them? They didn't get rich bycounting their $$$$$$$$ every night, they found ways to make it work to MAKE MORE $$$ for them! THAT'S HOW THEY KEPT GETTING RICHER, they spend s LOT TO keep more people working making things to sell and eventually put more $$$$ into their banks!
    THAT'S how they keep getting richer, and so do the rest of us!

  34. What is so bad about being a millionaire? Warren is a millionaire so is Bernie. In Sweden you pay 80 per cent tax. The rich will leave and take their $ with them.

  35. Ms. Warren it’s not your money. You will spend it like a drunken sailor. You didn’t take the risk to earn it.Stay out of our pockets. You will lose and you will lose big. We don’t want your Socialism! We pay enough. Why should we trust in the Swamp?

  36. Warren is a communist! She is an idiot who hates anyone who has been financially successful. "We can't afford"? Does she have a mouse in her pocket?

  37. Why doesn't she take the government employees off the government retirement/insurance dole that we all pay for and put them on the private system we all have?

  38. If i we're rich and they came after everything I had…I would just pack my shit up and leave. If I were a wealthy business owner and they started sinching down on me, trying to take my money, I'd just close the doors and leave…

  39. How many of y'all here defending the rich are actually billionaires, or have any prospect of ever becoming billionaires? Or are y'all drowning in medical and student debt like the rest of the country

  40. "All I'm asking is for a little slice" – you aren't asking. Asking means you leave the option to the afflicted to say "No, thanks".
    You're imposing, and you make it look as an awesome idea by using precisely the same populist tactics that Trump is being bashed for.

  41. The damage this would cause to the private sector and our economy as a whole would be devastating, it's unbelievable how naive they are.

  42. They are concerned about the concentration of wealth? But what is the engine of wealth concentration? Central banking. Central banking allows those at the top of pyramid with access to the central bank's new cheap money to purchase productive assets before the economy adjusts to the additional currency units. Another way to access the federal reserve (central bank) money taps is through lobbying the federal government. That also works in taking other people's wealth. It too drives wealth inequality.

    Notice how their solution however is not to address that they, those in government like Warren created the wealth inequality problem, but rather to make an attempt at another back end patch to the damage they caused. Oddly this back end patch would most penalize those who are working their way up fair and square by pleasing their fellow man. For instance the guy who started a business that finally took off or the professional athlete or an actor who finally made it. Those and a variety of other people who earned their wealth pleasing their fellow man in some way would be hardest hit for they would have the most trouble protecting their wealth and many of them generate it over a relatively short period of their lives.

    A wealth tax does nothing to solve the structural problems. It in fact exacerbates them. The very wealthy can lobby government. Everyone at the tippy top will simply use government and the central bank to extract more than they pay. They'll get back every dime and then some.

  43. At minute 5 in the video, Warren calls billionaires free-loaders. Is Warren Buffet a free-loader? How about Bill Gates or Steve Jobs?

  44. The Left does not love the destitute or the working class, no, they hate the successful, the self-reliant and the wealthy.

  45. Hard to believe politicians still talk about stupid shit like this. Regardless of tax structure, the federal government has gathered in about 17% of GDP in the post-war world. What this moron is proposing will cause capital flight and shrink GDP.

  46. Ocasio Cortez did not say the existence of billionaires was imorral. She said the existence of billionaires was imorral when you have extreme poverty in the country. There is a big difference.

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