Wealth tax pioneer: Massive capital flight out of US if Warren elected

New York University's Edward Wolff, author of "Top Heavy," and CNBC's Robert Frank sit down with the "Power Lunch" team to break down Sen. Elizabeth Warren's wealth tax proposal that has spiraled into a war of words with billionaires.

[DynamicUnreal]

A billionaire would have to make a 6% return on his or her investment just to maintain the same level wealth and that’s without factoring inflation. Also what happens when the stock market goes down and everyone loses money? This just sounds like a catastrophe waiting to happen...

[rodbrewster]

Surely these patriotic Americans wouldn't run out on their country.

[andrewj]

The US can implement an "exit" tax on that wealth. Instead of 2% how about 30 or 40%.

[jordanschug]

Why everyone should vote.for Andrew Yang. No wealth tax and we all get $1000 a month through a time tested value added tax. It makes so much sense it's frustrating not more people are following

[jaredhighlands]

Wow we have tens of thousands of veterans dying on the street and this is what is on corporate media.

[danesovic]

Destroys incentive to invest? US businesses stopped investing long time ago. Right now they just do share buybacks.

[The_General_Zubas]

2:10 See, this is why I like Bernie Sanders's Tax structures more.

Im starting ti feel as if ElWarren is making her plans too convoluted, just so the idea behind it can be Attacked.

As it is right now.

#BernieBlackout

[exstasis]

I'd be curious to hear someone make the case for a higher wealth tax (like 3%) but have tax deductions specifically for providing jobs. So it's a use it or lose it tax.

[AlmaVasquezjr]

Andrew yang has said the wealth tax won't work.

[kalebbruwer]

This is not sustainable. Warren saw that her plans can't be paid for with an income tax no matter what the rate, so she looked at "money" (most of it is actually stock) people have and figured "I could just use that. 6% of it covers what I need every year." But what happens if you tax onnwealth instead of change in wealth (that would be income/profit) is that wealth goes down. So this tax will collect less and less money every year.

Assuming that there is no capital flight and that this doesn't negatively affect the stock market (some generous assumptions) She will take half of the wealthy's fortunes in 10 years. *That also means that her wealth tax will be making half as much in 10 years.*

[whistlerwind]

When you're using Europe (name any country) as a model for any U.S. policy, you've failed from the get go.

[LucianLusilver]

Andrew Yang's VAT+UBI can be a great way instead of a wealth tax

[really]

Capital gains should be taxed as ordinary income.

[davidsegal]

If the Dems nominate Warren, they deserve what they get. Unfortunately for the rest of us, it means Trump.

[mrfuzztone]

Ray Dalio has interesting observations on the vast amounts of money that have been accumulated at the top. What is it being invested in? Productive uses?

[justinbelt]

"wealth tax" is as equally criminal as "inheritance tax". such schemes are the purest forms of governmental confiscation. and there should be no discussion of "fair" or "justifiable" percentages, as for said percentages ALWAYS rise over time. let's not forget that the income tax was initially sold as a tiny tax on the super wealthy.

[popacasian-vian]

Swiss wealth tax depends on wealth and 10 mil and above in Zurich or Zug is about 1.25 to 2%. To be honest wealthy people are not residents in keep the money here but are legal residents in Gibraltar or Monaco. US citizens cannot avoid wealth taxes unless they give up their citizenship or putting the money on a trust....

[esedave]

If there's capital flight can't the us put economic sanctions on those fleeing like they do other countries e.g Huawei, Venezuela etc?

[sass]

The rate of return of capital for the 1/10 of 1% is not 3 percent though..its exponential at the top and this minor tax will help reduce the deficit a little bit. Which in the long term is the best for these companies too

[warrenpeece]

Exactly! But the government will not want to lose that revenue so the threshold will drop to the point that it reaches the middle class. Just like the original income tax and AMT!