Warren’s wealth tax will only bring in enough money to support one of her pet projects — if she’s lucky.
Mark Zandi, chief economist at Moody’s Analytics, originally backed Elizabeth Warren’s “Medicare for all” plan. Now he doubts her wealth tax will generate the revenue needed to pay for it and all her other “plans.”
“I’m skeptical the wealth tax will generate the same amount of revenue after considering all her plans together,” Zandi told Reuters. “It’s hard to believe, billionaires are going to use every resource to avoid paying the tax.”
According to Reuters, if the wealth tax projection falls short, Zandi says other taxes, such as those on corporations and employers, will close the gap. That only works when economists discuss her “Medicare for all” plan, however. After adding expanded government programs such as free child care and student loan forgiveness to the equation, Warren’s wealth tax won’t provide nearly enough funding.
In short, Zandi believes Warren’s economic breakdown for her “Medicare for all” plan is sufficient, but if she wants to implement any other plans — which she’s made abundantly clear she does — she will need to increase taxes. Warren would need to settle for tackling only one plan if she intends to keep her promise of not raising taxes for middle-class families.
A new study from the Heritage Foundation reinforces the obviously dubious nature of Warren’s claims about tax increases. The study shows that under a Democratic presidency — including all 2020 Democratic hopefuls, not just Warren — taxes will increase significantly. It’s part of the deal when Americans vote for an expansion of government and social programs.
Bipartisan studies have revealed similar conclusions regarding Warren’s and other progressives’ “Medicare for all” plans.
“There is simply not enough available revenue from high earners and businesses to cover the full cost of eliminating premiums, ending all cost-sharing, and expanding coverage to all Americans and for (virtually) all health services,” the Committee for a Responsible Budget concluded.
When bipartisan groups, conservative think tanks, and liberal-leaning economists, such as Zandi, agree taxes must heavily increase in order to pay for Warren’s plans, that should serve as a warning that Warren’s plans are a disaster. Don’t be fooled by the utopian promises — middle-class taxes must increase to pay for these programs, whether they be “Medicare for all,” free child care, free college, or student loan forgiveness.