Posted on 01/28/2020 5:20:27 PM PST by karpov
[A]ccording to a recent study by former Congressional Budget Office director Douglas Holtz-Eakin and Gordon Gray, both of whom are now affiliated with the conservative policy organization American Action Forum (AAF), the effects of a wealth tax would extend throughout the economy, reducing the supply of capital and decreasing investment, which would negatively impact worker pay.
Sanders' wealth tax would cost workers about $1.6 trillion over a decade, they estimate. Over time, as the impact of the tax grew, workers would end up implicitly shouldering about 63 percent of the burden. The wealthy would indeed have less wealth, but workers would come out behind as well. Sanders, the champion of the working class, would effectively be taxing the working class he claims he wants to support.
It's possible, of course, that these projections, which rely on complex macroeconomic simulations, are off by some degree. But there's little question about the basic underlying mechanism. The very wealthy, almost by definition, control much of the supply of capital, which funds investment, innovation, and, thus, productivity growth. Without investment in productivity-enhancing activities, which allow workers to produce more with the same effort, wages tend to stagnate, affecting workers throughout the income spectrum.
Nor can the wealth tax be justified on the grounds that its negative effects would be swamped by the benefits of government spending. Yet as Holtz-Eakin said on a recent AAF podcast, even if you believe this is the case, that merely suggests proponents of such spending should find a less economically destructive way to raise the revenue for such spending.
Because in the end, that's what a wealth tax is: a policy of economic destruction. Its intellectual backers have been explicit in advertising that it is designed to destroy and prevent fortunes
(Excerpt) Read more at reason.com ...
He is a distraction. I am becoming more convinced Moochie is thinking of it. Rumors are growing stronger in Chicago because dem donors don’t like any of the current candidates.
If my online bookie took bets on this I would bet it.
It’s too late for her to get in, she want be in the primaries and only would this work in a brokered or open convention.
Boinie the Bolshie is the Democrat frontrunner. They’re still gonna screw him out of his rightful nomination. Look for Slo Joe and Stacy Abrams. That’s the only way they’ll get the black vote.
do you think Dems wouldnt do that?..they have no one.
He’s a progressive like FDR. FDR taxed businesses during the Depression plus brought in SS so the businesses were taxed twice and those that worked brought home less money.
I agree with you. Maybe she is just humoring the donors. But that is the rumor in chicago among insiders.
WhT better way to raise money for the Obama Foundation? Worked for the Clntons
Sanders doesn’t give a crap about ordinary workers. He’s got his; screw everybody else.
The voters would have to go along with that. There’s been a “bandwagon” effect ever since primaries became the dominant delegate selection method in 1972.
“Three tickets out of Iowa, two out of New Hampshire” - I think McCain was the only one to break that mold.
When it gets down to two of course one usually ends up dominating. Now the superdelegates don’t vote until the 2nd ballot this time - that does make a 2nd ballot somewhat more likely. It’s still a longshot for Hillary but not a huge longshot.
Of course it would. All crap floats down to the people paying for everything. Whether it’s more taxes and fees for everything or higher cost of everything. It ALWAYS falls on the people working.
working class not to worry about being taxed as the Bernie bros will be putting many of them in camps and others against the wall.
Throw sand into the engine of the economy, what do you think will happen?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.