Democratic presidential candidate Sen. Elizabeth Warren (D-MA) has released her tax plan that an analysis has found would result in a tax rate of over 100% for some billionaires and millionaires.
The Wall Street Journal reports: Potential tax rates over 100% could result from the combination of tax increases the Massachusetts senator proposes for the very top tier of investors. She wants to return the top income-tax rate to 39.6% from 37%, impose a new 14.8% tax for Social Security, add an annual tax of up to 6% on accumulated wealth and require rich investors to pay capital-gains taxes at the same rates as other income even if they don’t sell their assets.
Consider a billionaire with a $1,000 investment who earns a 6% return, or $60, received as a capital gain, dividend or interest. If all of Ms. Warren’s taxes are implemented, he could owe 58.2% of that, or $35 in federal tax. Plus, his entire investment would incur a 6% wealth tax, i.e., at least $60. The result: taxes as high as $95 on income of $60 for a combined tax rate of 158%.
Warren’s economic plan was recently harshly criticized by former Obama administration adviser Steven Rattner, who said, “I would say it’d be disastrous for the American economy.”
“The fundamental different view she has of what capitalism is – she says she’s a capitalist, but she’s not a capitalist,” Rattner said, adding that Warren is essentially a socialist who “wants to fundamentally change the role of an American company, how an American company is governed, what it’s supposed to do, in ways that I think at least would be disastrous for the American economy.” – READ MORE