Mediaboss Marketing

Ms. Warren disagrees. In the latest Democratic debate, she said the spending programs funded by her wealth tax would be transformative for workers. Those plans would raise wages, make college tuition-free and relieve graduates of student debt, she said, adding, We can invest in an entire generations future.

An emerging group of liberal economists say taxes on high-earners could spur growth even if the government did nothing with the revenue because the concentration of income and wealth is dampening consumer spending.

We are experiencing a revolution right now in macroeconomics, particularly in the policy space, said Mark Paul, an economist who is a fellow at the liberal Roosevelt Institute in Washington. We can think of a wealth tax as welfare-enhancing, in and of itself, simply by constraining the power of the very wealthy to influence public policy and distort markets to their advantage.

Taken together, Ms. Warrens proposals would transform the role of federal taxation. If every tax increase she has proposed in the campaign passed and raised as much revenue as her advisers predict a contingency hotly debated among even liberal economists total federal tax revenue would grow more than 50 percent.

The United States would leap from one of the lowest-taxed rich nations to one of the highest. It would collect more taxes as a share of the economy than the Netherlands and only slightly less than Italy.

Mr. Sanderss plan envisions a similarly large increase in tax levels. Former Vice President Joseph R. Biden Jr.s proposals are much smaller in scale: He would raise taxes on the wealthy and corporations by $3.4 trillion over a decade, in order to fund increased spending on health care, higher education, infrastructure and carbon emissions reduction.

If Ms. Warrens tax program is enacted, said Gabriel Zucman, an economist at Berkeley who is an architect of her wealth tax proposal, in my view, the most likely effect is a small positive effect on growth, depending on how the revenues are used.

Continue reading here:
Could Tax Increases Speed Up the Economy? Democrats Say Yes - The New York Times