make big tax holes again



NOTASA defines black holes as "a large amount of material packed in a very small area … the result is a gravitational field so powerful that nothing, not even light, can escape". That makes Senator Elizabeth Warren, D-Mass. Is the candidate of black holes tax.

To quote NASA's definition, Warren proposes "a large amount of spending from a limited resource pool … the result is a threatening financial catastrophe so strong that nothing, not even Alexandria Ocasio-Cortez, could to escape ".

I'm exaggerating slightly. After all, the 2020 candidate's spending plans are only extraordinary. Take the child care plan announced by the senator. It would provide free child care for families earning less than 200% of the federal poverty line and cap child care costs at 7% of household income for all other families. Rather than making child care cheaper by reducing barriers to entry for providers, simply by requiring a criminal background check rather than expensive qualifications, Warren simply asks the government to pay the bills.

This is a problem because Warren's program will almost certainly cost more than $ 1 trillion over 10 years. Warren's advisers say it will cost $ 700 billion, but they use a very creative accounting method. However, the real problem with Warren's plan is that he adds a litany of other spending explosions: the senator also supports government-funded health care, cancellation of student loans and the Green New Deal. Collectively, it would cost tens of billions of dollars over 10 years. But while Warren claims that the wealth tax will pay for it, his own advisers say differently. They suggest that the wealth tax would generate only about $ 3 trillion over 10 years. To get a more accurate figure reflecting tax evasion on capital, try to divide $ 3 trillion by five.

Do not get me wrong, I recognize that Republicans are not saints in fiscal rectitude. Although GOP tax cuts are generally good policy and the necessary increases in Trump's defense spending are needed, the GOP ignores rights reform. But Warren's plan is a plan to evacuate wealth, inflation, interest rates and structural economic stagnation.

As I said, Warren considers, for fiscal health, what are black holes: frustration.


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