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.”
NEW YORK, NEW YORK – SEPTEMBER 16: 2020 Democratic presidential candidate Sen. Elizabeth Warren (D-MA) speaks during a rally in Washington Square Park on September 16, 2019 in New York City. Warren unveiled a sweeping anti-corruption plan earlier on Monday. (Photo by Bauzen/GC Images)
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.
Summers and Sarin contend that, “wealth taxes would sap innovation by putting new burdens on entrepreneurial businesses while they are starting up. In their view, a country with more millionaires is a sign of economic vibrancy.”
Another Warren proposal would raise the tax on gun manufacturers from the current 10 percent “to 30 percent on guns and 50 percent on ammunition.” The proposal says the purpose is “to bring in new federal revenue that we can use for gun violence prevention and enforcement of existing gun laws.”
Warren also proposes to create a corporate tax of seven percent to every dollar a company reports in profits above $100 million, and an “excessive lobbying tax” that will tax 35 percent to firms that spend $500,000 on lobbying. A 60 percent levy would apply to firms that spend above $1 million on lobbying, and 75 percent if they spend above $5 million.
Another major proposal from Warren would remove the tax cuts implemented by President Donald Trump and Congress in 2018. According to Adam Michel, a senior policy analyst at the Heritage Foundation, “the tax cuts are benefiting Americans at every income level.”
“Even some of the poorest congressional districts have received upwards of 20% income tax cuts,” according to Michel. “Repealing the tax cuts wouldn’t just mean sending more of your earnings to the IRS. It would also slow the economy, which would mean lost wage growth in the coming years.”
Kharen Martinez Murcia