Billionaires Only? Warren Errs in Saying Whom Her Health Plan Would Tax




Billionaires Only? Warren Errs in Saying Whom Her Health Plan Would Tax
Billionaires Only? Warren Errs in Saying Whom Her Health Plan Would Tax  

WASHINGTON - When Sen. Elizabeth Warren laid out her plan for "Medicare for All" Friday, she said she would raise taxes on the top 1% of households to help pay for it. The middle class, she said, would not pay "one penny" more.

On Saturday night, Warren presented an even narrower description of who would face higher taxes under her plan. She told reporters that billionaires would be the only people to see their taxes go up - a misstatement of what she had proposed a day earlier.

"It doesn't raise taxes on anybody but billionaires," Warren told reporters in Dubuque, Iowa, when asked what income bracket she defined as "middle class." She added, "And you know what? The billionaires can afford it."

Anyone with under $1 billion in net worth, she said, "is not paying a penny more." Asked again how she defined middle class, she repeated the assertion. "Understand this," she said. "This is no increase in taxes for anyone except billionaires. Period. Done."

But that is not what she proposed Friday. Warren's plan for Medicare for All, which calls for $20.5 trillion in new federal spending over a decade, would be financed through a mix of sources, including taxes on businesses and $3 trillion in total from two proposals to tax wealthy Americans.

One of those measures would steepen her proposed wealth tax on net worth above $1 billion. But the other - accounting for $2 trillion of the $3 trillion total - would go far beyond billionaires. For the top 1% of households, Warren would increase taxes on investment gains. She would put in place a new system in which capital gains are taxed annually instead of when investments are sold, and she would raise the tax rate on capital gains to be the same as on ordinary income like wages.

Asked about Warren's comments, a spokeswoman for her campaign acknowledged that taxes would increase for the top 1%, but said Warren had been referring to her wealth tax proposal when she said taxes would increase only for billionaires.

The campaign of former Vice President Joe Biden, one of Warren's top rivals, quickly criticized her over the comments.

"The American people have to be able to trust whoever our party nominates to take on Donald Trump to be straight with them about health care," Kate Bedingfield, a deputy campaign manager for Biden, said in a statement late Saturday night. "Sen. Warren said tonight that her single-payer plan won't raise taxes on anyone but billionaires, but that's simply not true."

Bedingfield argued that two other taxes proposed by Warren would also affect a broader population than just billionaires: a tax on employers that is similar to what they are currently spending on their employees' health care, and a tax on financial transactions like stock trades.

The issue of Medicare for All has been a major and escalating point of tension between Warren and Biden and a central fault line in the Democratic presidential primary. Biden supports adding a public health insurance option that people can purchase and building on the Affordable Care Act. He has cast Warren's more expansive plan as costly and unrealistic, telling reporters in Des Moines on Saturday that "getting that plan through even a Democratic Congress would be difficult."

Warren's proposal to increase taxes on investment gains did not precisely describe how she would define the top 1% of households. In 2017, the top 1% of tax returns had income above roughly $515,000, according to the Internal Revenue Service - about 1.4 million tax returns in total. Earlier this year, Forbes said there were 607 billionaires in the United States.

The other measure to tax wealthy Americans that Warren put forward Friday would increase her proposed wealth tax on net worth above $1 billion to 6% annually, from 3%. (Her wealth tax also includes a 2% tax on net worth over $50 million, but that remains unchanged from what she proposed in January.)

On Sunday, speaking to reporters in Davenport, Iowa, Warren offered a broader description of who would face higher taxes under her proposal. "We ask the big corporations and the top 1%," she said, "to pay a little more."

This article originally appeared in The New York Times.


© 2019 The New York Times Company



COMMENTS

More Related News

11 names, 120 hours of interviews: Inside the grueling VP search that led Joe Biden to Kamala Harris
11 names, 120 hours of interviews: Inside the grueling VP search that led Joe Biden to Kamala Harris

Over three months, 11 women were vetted as possible running mates for Joe Biden. In the end, Kamala Harris got the call that would make history.

Radical or moderate? Trump paints Democratic ticket as both
Radical or moderate? Trump paints Democratic ticket as both
  • World
  • 2020-08-13 04:27:18Z

President Donald Trump's campaign is struggling to define California Sen. Kamala Harris, the newly announced running mate for Democratic rival Joe Biden. With Trump lagging in the polls less than 90 days before the election, his team faces a pivotal choice.

Biden, Harris lash Trump at debut of historic VP choice
Biden, Harris lash Trump at debut of historic VP choice
  • World
  • 2020-08-13 04:25:41Z

Joe Biden and Kamala Harris pushed past their one-time political rivalry to deliver an aggressive attack on the character and performance of President Donald Trump in their historic first appearance as running mates. The physical debut of the Democratic ticket on Wednesday was without parallel in recent political annals. The coronavirus prevented Biden and Harris from appearing before the large, adoring crowd that typically greets a presidential nominee and his or her running mate.

Warning on Russia adds questions about Senate
Warning on Russia adds questions about Senate's Biden probe
  • World
  • 2020-08-13 04:21:00Z

Even before last week's intelligence assessment on foreign election interference, Republican Sen. Ron Johnson was facing criticism from Democrats that his investigation of presidential candidate Joe Biden and Ukraine was politically motivated and advancing Russian interests. The investigation is unfolding as the country, months removed from an impeachment case that had centered on Ukraine, is dealing with a pandemic and confronting the issue of racial injustice.

POWER PLAYERS: The 16 key healthcare experts advising Joe Biden and Kamala Harris
POWER PLAYERS: The 16 key healthcare experts advising Joe Biden and Kamala Harris

Should former Vice President Joe Biden with the White House, these experts would shape how the US emerges from the coronavirus pandemic.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Latin America