…and one Progressive-Democrat’s tax proposal. Although, the fact is that these effects aren’t unique to Senator and Progressive-Democratic Party Presidential candidate Elizabeth Warren (D, NM): the trend of effects are the outcomes of all the Progressive-Democratic Party’s proposals, differing only in detail.
Warren’s particular proposal is to tax business profits above $100 million at 7%. Here are some outcomes of such a thing, according to the Tax Foundation, with the FoxBusiness cited. A tax like this would
- reduce incentives to invest, so GDP would shrink by ~1.9% over the long-term
- reduce a firm’s capital by 3.3%
- reduce wages by about 1.5%
- eliminate as many as 454,000 full-time jobs
- reduce after-tax income across the entire economy by 0.93%, with the biggest reductions on the top 1% of taxpayers
- considering that shrinkage of our economy, after-tax income reduction could be an even larger 2.16%
But, hey, it gets after that hated 1%, so it’s all good.
This is of a piece with all Progressive-Democrat tax ideas, based as they so much are on their belief that the money really isn’t the business’ money, anyway. They didn’t earn that. They had (Government) help.