Elizabeth Warren’s Tax Plan Would Bring Rates Over 100% for Some
Presidential hopeful proposes wealth tax and levy on unrealized gains, a combination that could alter investing
Democratic presidential candidate Elizabeth Warren wants to boost taxes to pay for an expansion of health care, education, housing and other programs. PHOTO: STEVEN SENNE/ASSOCIATED PRESS
Updated Nov. 15, 2019 8:58 am ET
WASHINGTON—Democratic presidential candidate Elizabeth Warren has unveiled sweeping tax proposals that would push federal tax rates on some billionaires and multimillionaires above 100%.
That prospect raises questions for taxpayers and the broader economy that experts are starting to ponder: Under which circumstances would taxpayers have to pay those rates? How might that change their behavior? And would investment and economic growth suffer?
Potential tax rates over 100% could result from the combination of tax increases the Massachusetts senator proposes for the very top tier of investors. She wants to return the top income-tax rate to 39.6% from 37%, impose a new 14.8% tax for Social Security, add an annual tax of up to 6% on accumulated wealth and require rich investors to pay capital-gains taxes at the same rates as other income even if they don’t sell their assets.
Is it safe yet to declare her campaign, “Done”?