Fack Check: Yang Claims European Wealth Taxes Failed, Likes Sales Taxes All Would Pay

Breitbart Politics 1 month ago

Tech entrepreneur and Democrat presidential hopeful Andrew Yang said on Tuesday at the Democrat debate that rival Sen. Elizabeth Warren’s (D-MA) wealth tax has failed in other western countries that have tried it.

Yang said he agreed with Warren that we are living in the most “winner-take-all economy in history.”

“And a wealth tax makes a lot of sense in principle,” Yang said. “The problem is it’s been tried in Germany, France, Denmark, Sweden, and all those countries ended up repealing it because it had massive implementation problems and did not generate the revenue that they projected.”

“If we can’t learn from the failed experiences of other countries what can we learn from?” Yang said. “We should not be looking to other countries’ mistakes. Instead we should be looking at what Germany, France, Denmark and Sweden still have, which is a Value Added Tax.”

Then Yang suggested those taxes would come from American corporations and other businesses.

“If we give the American people a tiny slice of every Amazon sale, every Google search, every robot truck mile, every Facebook ad we can generate hundreds of billions of dollars and then put it into our hands because we know best how to use it,” Yang said.

National Review reported on the countries that have indeed repealed their wealth tax.

Wealth-tax supporters do not seem concerned about the likely damage to economic growth. But they should know that from a practical standpoint, wealth taxes in other countries have raised little money and have been a beast to administer.

More than a dozen European countries used to have wealth taxes, but nearly all of these countries repealed them, including Austria, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, the Netherlands, Luxembourg, and Sweden. Wealth taxes survive only in Norway, Spain, and Switzerland.

Before repeal, European wealth taxes — with a variety of rates and bases — tended to raise only about 0.2 percent of gross domestic product in revenue, based on Organization for Economic Cooperation and Development data. That is only 1/40th as much as the U.S. federal income tax raises.

Leftist economist and political commentator Robert Reich tweeted about VAT after Yang’s remarks and how it would hurt lower income Americans.

Can we get this straight? A VAT — value added tax — is a sales tax on every stage of production. A sales tax is regressive. It takes a bigger bite from lower-income pay than from higher-income. A VAT is the most regressive system of all. 

Follow Penny Starr on Twitter

Source link
Read also:
Forbes › Finance › 2 weeks ago
Joseph J. Thorndike argues that proponents of wealth taxes can learn from the unpopular estate tax by focusing on what has made the wealth tax relatively popular in prospect and narrowly targeting those with the largest fortunes, as promised.
The Inquisitr › Politics › 1 month ago
While Democratic presidential candidate Andrew Yang’s exclusion from mainstream media coverage doesn’t appear to be stopping anytime soon, his supporters aren’t ready to stop calling it out, either. In a recent Fox News poll, Yang was tied at 2...
Forbes › Finance › 1 month ago
In an old brick gym in Concord, N.H., Luke Bonner is bodying up against Andrew Yang and, truth be told, Yang doesn’t have much of a chance. Bonner is a 7-footer who played professionally in Europe. Yang is a lawyer with a background in tech...
Business Insider › Politics › 1 month ago
Kimberley Watkins, an ex-employee of Democratic presidential contender Andrew Yang, writing in the Gotham Gazette Magazine, claims he fired her because she got married. In 2007, when Watkins claims the firing took place, Yang was CEO of education...
Washington Times › 1 day ago
The New York state attorney general says one of the nation’s biggest photo and video equipment retailers, Manhattan’s B&H, has failed to pay millions in sales taxes.
Washington Examiner › 1 month ago
Andrew Yang disagreed with almost every other candidate during the Democratic presidential debate Tuesday by saying he didn’t support a wealth tax because countries in Europe has already tried it and it hadn’t worked.
Business Insider › Politics › 2 days ago
Presidential hopeful Andrew Yang wrote a blog post laying out how he would regulate the tech industry. As president, Yang said he would not break up big tech company monopolies. Instead, the former tech executive wants to regulate the use of data and...
NBC News › 1 month ago
How would Warren’s wealth tax works, and would anyone actually pay it?
NBC News › Politics › 1 month ago
How would Warren’s wealth tax work, and would anyone actually pay it?
Business Insider › Finance › 2 weeks ago
As a freelancer, I have to pay quarterly taxes. While I don't exactly enjoy paying taxes, it's is a great opportunity to earn points and miles. I earn more than 40,000 points per year paying my taxes with a rewards credit card. Pick a card that earns a...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google