Elizabeth Warren’s $52 trillion “Medicare for All” health care plan would push tax rates above 100% for some
By Ethan Huff
According to presidential hopeful Elizabeth Warren, Americans don’t really need to worry about who’s going to pay for her $52 trillion “Medicare for All” health care proposal because it will only affect a small handful of very rich people. But there’s a bit more to the story than that.
The truth is that Warren’s plan would spike the federal tax rate on some billionaires and multimillionaires by more than 100 percent, which would completely disincentivize them from investing – or even just working, for that matter.
In other words, if you make too much money as a wealthy investor, Warren plans to take more than all of your dividends to pay for other people’s “health care” coverage.
What Warren is proposing at the federal level, combined with the tax schemes that are already in place in some “progressive” states like Massachusetts, it becomes clear that how Warren plans to pay for “Medicare for All” has the very strong potential to halt the economy before collapsing it.
As explained by FOX Business, the top income tax rate would increase from 37 percent to 39.6 percent under Warren’s plan. This would be joined by a new 14.8 percent tax on Social Security, and a six percent tax on individuals worth more than $1 billion.
Warren’s plan would also require investors to pay capital gains taxes at the same rate as their other incomes, really hitting them hard in such a way as to discourage investment.
For more related news about how the Democratic Party’s plans for “free” everything could collapse our economy, be sure to check out Collapse.news.
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At what point do the rich become so highly taxed that they just stop doing business?
Pretend, for a moment, that you’re a billionaire with a $1,000 investment who just earned a six percent, or $60, return on that investment as a capital gain, or dividend. Under Warren’s plan, you’d owe 58.2 percent of that, or $35, to the federal government, combined with a six percent wealth tax, which comes to $60.
So, $35 plus $60 equals $95, meaning you’d have to pay $95 in taxes for the $60 you actually earned from your investment. This translates into a combined tax rate of 158 percent, which obviously makes no logical or feasible sense in the longer term. But this is how Elizabeth Warren plans to tax the richest of the rich if she wins the presidency in 2020.
We have The Wall Street Journal (WSJ) to thank for crunching these hypothetical numbers, which illustrate the point that “Medicare for All” would never work. But will left-leaning Americans actually take the time to consider this before sending up their smoke signals of support to this wannabe Pocahontas-in-Chief?
“If you raise tax rates so high that you start raising less revenue because people work less, they save less, they hide their money more, then there’s more tax evasion, then it might be counterproductive,” correctly pointed out George Yin, a professor emeritus of law and taxation at the University of Virginia School of Law, during a recent interview with FOX Business.
Despite the non-viability of her proposal, Warren is still aggressively pushing it as a way to somehow pay for everyone’s health care without incurring any negative consequences. According to Warren, only 75,000 households, or about 0.1 percent of the population, would be affected by her plan, so it’s really nothing for most people to worry about.
“In my opinion, she represents the worst in politicians as she’s trying to demonize wealthy people because there are more poor people than wealthy people,” stated money manager Leon Cooperman to CNBC in a recent interview.
Bernie Sanders has proposed a similar plan that would implement a wealth tax ranging from one percent on couples worth $32 million to as high as eight percent on couples worth more than $10 billion.
Sources for this article include: