Elizabeth Warren doesn’t seem to know that France’s wealth tax caused a REDUCTION in tax revenues

This is what the Washington Post wrote about France’s wealth tax:

http://www.washingtonpost.com/wp-dyn/content/article/2006/07/15/AR2006071501010.html

Old Money, New Money Flee France and Its Wealth Tax

July 16, 2006

Eric Pinchet, author of a French tax guide, estimates the wealth tax earns the government about $2.6 billion a year but has cost the country more than $125 billion in capital flight since 1998.

Anyone who looks at the above numbers would know that all of that capital flight means less income tax, less capital gains tax, less sales tax, less social security tax, and less of many other taxes too. Whatever tax revenue France gets from its wealth tax is more than dwarfed by the reductions in other taxes.

And Warren’s proposed wealth tax rate is actually higher than France’s, so its potential for harm is actually bigger as well.

That doesn’t sound like a good idea for anyone who wants to increase the amount of tax revenue that gets collected by the government.

On the other hand, if Warren’s real goal is to appeal to Democratic primary voters who feel envy and jealousy, and who don’t understand math or the concept of capital flight, then her proposal is a brilliant strategy. Her horrible proposal could very well get her elected President in 2020.

January 28, 2019. Tags: , , , , , , , , , , , , , . Economics. Leave a comment.