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Thread: Warren Wealth Tax has Marriage Penalty

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    Warren Wealth Tax has Marriage Penalty

    Elizabeth Warren’s wealth tax could include a $1 million marriage penalty

    Sen. Elizabeth Warren’s proposed wealth tax may create a new incentive for rich couples to divorce to avoid the tax.

    In a recent analysis of the Democratic presidential candidate’s signature tax, Harvard economist N. Gregory Mankiw said that because of the nature and structure of the tax, ultra-wealthy couples could split their fortunes in half through divorce and avoid paying any tax. He said that for certain couples, divorcing could save them $1 million a year.

    “The Warren proposal entails a $1 million per year marriage penalty,” said Mankiw, who was the head of President George W. Bush’s Council of Economic Advisers.

    The strategy is fairly simple. Warren’s plan would impose a 2% annual tax on wealth over $50 million and a 3% tax on wealth over $1 billion. If a wealthy couple is worth $100 million, they would pay a 2% tax on any wealth over $50 million, which in their case would amount to $1 million a year. But if they divorce and split their fortune in half, they would each be worth $50 million and neither would owe any wealth tax.

    A similar strategy could save even more for billionaires. If a couple is worth $2 billion and split their fortune in half through divorce, they could save $10 million a year.

    The Hollywood Left should be Thrilled!
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    Swedgin (09-24-2019),teeceetx (09-23-2019)

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    Yup, that's a winning strategy!

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    I already paid a $1M marriage penalty.

    Just sayin'...
    Last edited by Northern Rivers; 09-23-2019 at 10:17 PM.
    Good journey, Rickity!

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