Elizabeth Warren tells us we can restore the integrity of our political system and fund vital new social programs, without damaging our economy, by adopting her plutocrat tax. Right-wingers, on the other hand, are rending their garments and screaming that the next stop is Venezuela. Who’s right?
In my opinion, none of the above. The legal and administrative problems associated with the tax make it a less desirable alternative for soaking the rich than, say, the Sanders estate tax increase. The adoption of the tax will do little to improve the workings of our political system. On the other hand, the economic impacts of the tax have been vastly overstated by the right; whether it helps or hurts depends on how the proceeds are invested by the government.
In reality, the likelihood that the proposal will ever become law is quite small. Its real impact will be as a campaign tactic, and a symbol of genuine populism. Will it succeed on those terms? We’ll know for certain no later than next November.