Elizabeth Warren wants a ‘wealth tax.’ It might backfire.
Excerpt: DEMOCRATIC PRESIDENTIAL candidate Sen. Elizabeth Warren (Mass.) plans to propose an annual 2 percent federal tax on individual fortunes of more than $50 million and 3 percent on those greater than $1 billion, according to economists advising her campaign. A lot has to happen before anything like this could ever become law: Ms. Warren would have to (a) get elected; (b) win 60 votes in the Senate; and (c) overcome a likely constitutional challenge. (Depending on how it’s structured, a wealth tax might run afoul of the Constitution’s ban on “direct” taxes that are not levied in proportion to the population of each state.) Such political and legal obstacles aside, would it be a good idea?