Progressive presidential candidates Elizabeth Warren and Bernie Sanders are among the top tier of those vying for the Democratic nomination, and both are currently polling well against President Trump. Much of their popularity is attributed to their promises of Medicare-for-all and of student loan forgiveness.
Despite the popularity of these policies among left-leaning voters, Warren has yet to speak to the tax hike that will undoubtedly fall upon many middle class Americans in order to foot the bill. Warren and Sanders have been criticized heavily, by both conservatives and from Democratic rival Joe Biden, for their inability to offer greater transparency in regards to the ways in which they plan on funding these proposals.
Moreover, some economic models are predicting that some of the Democrats’ policies will have other negative consequences for the American economy besides racking up a high tab.
New analysis from the Penn Wharton Budget Model has projected that Warren’s recently released “wealth tax proposal” would lead to a decrease in overall economic growth by about “0.2 percentage points a year over the course of a decade.” (Back in 2017, estimates showed that President Trump’s tax cut would “increase economic growth by roughly 0.06 percentage points per year.”)
While Warren and Sanders continue to push their costly and possibly detrimental policy agendas on the campaign trail, President Trump is certain to set up a contrast between himself and the progressive frontrunners by touting the overall rise in economic growth and historic unemployment under his administration as the 2020 presidential race continues.
Read more at The New York Times.
