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What Elizabeth Warren’s wealth tax would do

If you’ve wondered what material effect Senator Elizabeth Warren’s proposed tax increases for the wealthy would have, look no further than the estimates by two economists who advised her, Patricia Cohen of the NYT writes.

• “If her wealth tax had been in effect since 1982, for example, Mr. Gates, who had made his first billion dollars by 1987, would have had $13.9 billion in 2018 instead of $97 billion.”

• “As for the 400 people who made it to Forbes magazine’s list of the country’s wealthiest people, each would have an average worth of $3.1 billion, down from the current $7.2 billion.”

“What an annual wealth tax of 6 percent does is that it makes it harder to stay a multibillionaire at age 70, 90, etc.,” Gabriel Zucman, who has advised Ms. Warren, told the NYT. “It makes wealth circulate.”