Analysts at the University of Pennsylvania found that the wealth tax proposed by Sen. Elizabeth Warren (D-Mass.) would raise at least $1 trillion less than what her campaign claims, calling into question a key source of funding for her generous spending plans such as government-run health care.
In addition to the shortfall, which Warren’s campaign argues could be narrowed through tougher enforcement, the Penn Wharton Budget Model (PWBM) also projected a GDP contraction of between 1 and 2 percent, “depending on how the money is spent.”
