Moody’s Chief Economist Mark Zandi says he has doubts over whether Elizabeth Warren will be able to cover the costs of her Medicare for All plan alongside her other government programs, according to Reuters.
Zandi, who signed a highly touted letter last week which backed Warren’s calculations now says her plan would only work ‘in isolation.’
“I stand by the funding estimates, as a standalone plan,” Zandi told Reuters.
He also doubts Warren’s central assumption; that ultra-rich people are just going to grab their ankles and hand over their money. Instead, those targeted will likely seek to dodge it.
“It’s not hard to believe billionaires are going to use every resource to avoid paying the tax,” said Zandi.
Even if the wealth tax projections fall short, Zandi believes Warren may still be able to make up the difference through other taxes in her plan, including those on corporations and employers.
Yet Zandi warned the wealth tax revenue predictions may not hold up if she also simultaneously tries to fund her proposed expansion of government programs, including free child-care and student debt forgiveness. –Reuters
“I’m skeptical the wealth tax will generate the same amount of revenue after considering all her plans together,” Zandi added.
Moreover, he’s not a fan of shifting Americans off their private health insurance plans in favor of a single-payer, government-run scheme which Warren estimates will cost an additional $20.5 billion in federal spending over 10 years – something she claims can