Tags: kudlow | wealth | tax | venezuela

Kudlow: Dem Wealth-Tax Plans Will Turn US Into Venezuela

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By    |   Friday, 01 February 2019 11:43 AM

White House economic adviser Larry Kudlow warns that wealth-tax proposals by Democrats will destroy the entire U.S. economy.

Kudlow’s remarks come as senior Democrats prepare to write a fiscal blueprint this year that would cut annual budget deficits and possibly include tax hikes on corporations and the wealthy.

U.S. Representative Alexandria Ocasio-Cortez, part of a new crop of Democrats that swept into office this year on a stronger liberal platform, has advocated taxes as high as 70 percent on taxable earnings above $10 million. That represents a large increase over the current 37 percent, which kicks in at $500,000 for a single earner.

Meanwhile, Massachusetts Senator Elizabeth Warren, another Democrat and liberal firebrand who has taken on Wall Street, has proposed a tax on the accumulated wealth of the ultra-rich, through an annual payment of 2 percent of the value of net assets between $50 million and $1 billion and a 3 percent rate above that.

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“Those are prosperity killers. These are growth killers. These are job killers. These are incentive killers,” Kudlow recently told Fox Business Network.

“The top 1 percent of Americans pay 37 percent of all the income taxes, OK? And the top 1 percent basically pays more than the lowest 90 percent, so who’s carrying the freight here?” the veteran financial guru and former Ronald Reagan adviser told Fox Business Network on Friday. “The most successful are not only paying their fair share, they’re paying the most. By far,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

“This is a return to some heavy government planning centrally directed economy,” said Kudlow, who served as the Trump campaign's senior economic adviser.

Kudlow predicted that if such plans were enacted, the U.S. could ultimately end up in the same economic crisis as Venezuela, which at one time was a vibrant country with scores of investment, Fox Business Network explained.

“Taxing rich people – that’s an old saw from the left. It never works,” Kudlow said. “I don’t know how these elections and nominations and candidacies will play out. I mean, look at Venezuela – it’s an absolute catastrophe. They taxed rich people, they taxed everybody and they have equality of sorts," Kudlow said.

“Everybody is poor in Venezuela except for… Maduro and a handful of his top military people. Is that what we want in America?”

Kudlow added that such attempts to remedy economic inequality with higher taxes on society’s wealthiest individuals “never works” and would be a “non-starter.” 

When asked whether Democrats would be able to reverse Trump’s tax plan he replied: “Never – not under the Presidents configuration.”

However, not everyone is as pessimistic as Kudlow is about a prospective tax on the wealthy.

JPMorgan Chase Chief Executive Officer Jamie Dimon, who leads one of Wall Street’s biggest banks, said this week that the ultra-rich could afford to pay more taxes as a wider political debate rages over increasing taxes for the wealthy, Reuters explained.

“I believe that individuals earning the most can afford to pay more, and I have no problem paying higher taxes to address some of the fundamental challenges and inequities in our society,” Dimon said in a statement emailed by JPMorgan, in response to questions posed by reporters over the past week.

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“However, we need to ensure that our tax dollars are going where they can be most effective - like expanding the earned income tax credit and other programs that support the people and communities who really need it,” Dimon added.

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White House economic adviser Larry Kudlow warns that wealth-tax proposals by Democrats will destroy the entire U.S. economy.
kudlow, wealth, tax, venezuela
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2019-43-01
Friday, 01 February 2019 11:43 AM
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