Big crowd turns out for Seattle rally involving top 2020 Presidential candidate and contender, Sen. Elizabeth Warren (D-Mass.), with an estimated 15,000 people gathered near the Seattle Center fountain.
KVI's John Carlson examines her plan for a 'wealth' tax to pay for some of her campaign promises like free child-care, universal Pre-K education, college debt forgiveness and free tuition at state technical colleges among other things.
"The center piece of it is a wealth tax of 2% on families with more than $50 million in assets, " says KVI's John Carlson. "She says your first $50 million is free and clear. Your 50-millionth and first dollar, you've gotta pitch in 2-cents on every dollar after that."
Carlson says the tax is not on salary or capital gains, "This is on your assets. If you own a company that has $3 billion (in value), you are assessed 2% just on the existence of the money."
Warren says her 'wealth' tax would generate $275 million a year and projects to haul in $2.75 trillion within 10 years.
"There are a number of European countries that used to have this tax and almost all of them don't anymore," Carlson says, "Because, again, you're not taxing someone for making money, and you're not taxing someone when they spend the money, you know, consumption (tax). You're just taxing them for having the money. "
"Its a portfolio tax," Carlson concludes.
Carlson questions whether or not it would reach in to real estate holdings or 401k retirement assets. Carlson warns, "Beware of, again, taxing something that exists just because it exists."