Warren’s Wealth

Senator and presidential candidate Elizabeth Warren has proposed a wealth tax of 2% on those with wealth exceeding $50 million and a 1% billionaire surcharge. This tax will affect 75,000 households. Assuming no behavioral changes and no tax avoidance/evasion strategies, the tax will raise $220 billion/annum. But, based on CBO estimates of similar tax proposals, I bet $75 billion/annum is tops. Over time lobbyists will gut the law with carveouts.