Oct 20, 2019

Architects of Elizabeth Warren wealth tax say we're in new Gilded Age

In an interview with Axios' Mike Allen for "Axios on HBO," economists Emmanuel Saez and Gabriel Zucman, who helped guide Democrat Sen. Elizabeth Warren's 2020 wealth tax plan, said America has entered a new Gilded Age.

The big picture: Warren's "ultra-millionaire tax" is one of the most progressive tax plans on the Democratic market. It aims to adjust rates so that the rich are not paying less, proportionately, in taxes than the wealthy. Opponents of the plan argue it would de-incentivize investments and stifle economic growth.

  • A paper released by Saez and Zucman in September analyzed how the plan would have affected the 15 wealthiest Americans' fortunes if it was in place since 1982. It found that subjects' net worth could have decreased by more than half.

What they're saying: "You look at the numbers and it's very similar to the Gilded Age... Taxation was very regressive during the Gilded Age," Zucman said.

  • Saez also argued America is facing new monopolies: "The equivalent of the Gilded Age today, are the Microsofts, the Apples, the Amazons — incredible companies that really transform the world, but you can see that they really monopolize things because everybody goes, you know, to the same provider and that dominates, entirely, the market."

Go deeper: Elizabeth Warren: What to know about the 2020 candidate's wealth tax proposal

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Warren would exhaust wealth tax with $800 billion education plan

Photo: Zach Gibson/Getty Images

Elizabeth Warren announced a sweeping $800 billion public education plan on Monday, but it would exhaust the remainder of the $2.75 trillion that she says would be raised under her wealth tax proposal, the Wall Street Journal reports.

Why it matters: The announcement comes at a time when she's been criticized for dodging questions from her 2020 Democratic rivals on how she plans to pay for "Medicare for All."

Go deeperArrowOct 21, 2019

The growing anti-Warren consensus shows the limitations of her plans

Illustration: Eniola Odetunde/Axios. Photo: Sean Rayford/Getty Images

The Economist came down hard on Sen. Elizabeth Warren last month, describing her regulatory proposals as "jaw-dropping" and warning of "a severe shock" were her plans to be enacted.

The state of play: Similar sentiment has arrived from Steve Rattner, the manager of Mike Bloomberg's fortune, who says that a "Warren presidency is a terrifying prospect." Billionaires Leon Cooperman and Jamie Dimon have also joined the chorus.

Go deeperArrowNov 7, 2019

Mitt Romney opposes cutting capital gains tax rate for the rich

In an interview with Mike Allen for "Axios on HBO," Republican Sen. Mitt Romney said he opposes cutting the capital gains tax rate for the rich.

The big picture: Republicans typically argue that cutting the capital gains tax rate will boost economic growth and provide room for increased spending. Democrats argue that doing so disproportionately benefits the rich.

Go deeperArrowOct 20, 2019