Democratic proposals like those from Senators Bernie Sanders, Elizabeth Warren and Representative Alexandria Ocasio-Cortez targeting the wealthy do not make sense, just ask New York’s Democratic Governor Andrew Cuomo.
“I see the Democrats pursue really economically illiterate proposals just because they think they sound good politically,” said Kevin Hassett, an economic advisor to President Trump.
Mr. Hassett spoke as potential Democratic challengers to President Trump eye progressive tax ideas intended to reduce income inequality.
Senator Warren has proposed an annual 2% tax on households worth more than $50%.
Freshman Democratic Representative Alexandria Ocasio-Cortez of New York floated a 70% Top tax rate on incomes of $10-M or more, an idea that 59% of people supported in a Hill–HarrisX poll conducted on 12-13 January.
Independent Senator Bernie Sanders is proposing to expand the estate tax on wealthy Americans, including a rate of as much as 77% on the value of estates above $1-B.
Polls show that voters are becoming more receptive to the idea of increasing taxes on the wealthy.
“I wish some economist would go and talk to these guys on how buybacks work,” Kevin Hassett, Chairman of the President’s Council of Economic Advisors said Monday in a TV interview.
“It’s very disappointing that over and over again I see the Democrats pursue really economically illiterate proposals just because they think they sound good politically.”
Democrats should be “ashamed,” added Mr. Hassett, a former economist at the American Enterprise Institute and ex-senior economist at the Federal Reserve.
JPMorgan Chase Chief Executive Officer Jamie Dimon, who leads one of Wall Street’s biggest banks, recently said that the ultra-rich could afford to pay more taxes as a wider political debate rages over increasing taxes for the wealthy.
“I believe that individuals earning the most can afford to pay more, and I have no problem paying higher taxes to address some of the fundamental challenges and inequities in our society,” Mr. Dimon said in a statement e-Mailed by JPMorgan, in response to questions posed by reporters.
“However, we need to ensure that our tax dollars are going where they can be most effective – like expanding the earned income tax credit and other programs that support the people and communities who really need it,” Mr. Dimon added.
Mr. Dimon’s remarks come as senior Democrats prepare to write a fiscal blueprint this year that would cut annual budget deficits and possibly include tax hikes on corporations and the wealthy.