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What Alexandria Ocasio-Cortez's Tax Plans Could Mean For Growth And Inequality

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Senators Elizabeth Warren and Bernie Sanders and freshman Representative Alexandria Ocasio-Cortez, have all proposed major tax increases on wealthy Americans. History shows that the United States has not only survived, but thrived when the rich had higher marginal tax rates. But how much would increasing rates actually raise, and what could it do to the economy? The real reason to tax might be to decrease inequality itself. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC What Democrats' Tax Plans Could Mean For Growth And Inequality
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Text Comments (2556)
CNBC (5 months ago)
Do you think the rich should be taxed more? How would you go about doing it?
Philosophy BA (6 days ago)
Gates' pseudo-monopoly Microsoft makes mediocre quality software. Buffet's Geico doesn't pay insurance claims, Bezos' Amazon keeps sending used stuff. And yet they have more money than the poorer half of the planet. Tax the top 1% instead of raising everyone's taxes. Works well in Finland.
arthur ejiofor (2 months ago)
Let's tax the rich via sales tax at let's say, hmmmm, 30%-50%? I'm sure they'll cut back spending to absorb the higher cost. That cut back, unfortunately, will be via less investments in the companies that do most of the hiring such as Walnart. Additionally, they'll put some of their money in tax shelters. Then the gap shall be widened much more.
Matthew Martin (2 months ago)
No, They earned it This is greedy and unreal
MetDet NC (2 months ago)
No. Solution: eliminate welfare and stop illegal immigration
MsRESPECT90 (2 months ago)
@Eric Martin BYE.
Fred Fred (5 days ago)
Just look at what is going on in France people. These people are crazy. Lol. France with the government because of the same stupid ideas lol
Philosophy BA (6 days ago)
Gates' pseudo-monopoly Microsoft makes mediocre quality software. Buffet's Geico doesn't pay insurance claims, Bezos' Amazon keeps sending used stuff. And yet they have more money than the poorer half of the planet. Tax the top 1% instead of raising everyone's taxes. Works well in Finland.
Hammer0f Thor (11 days ago)
Hey sheep let’s raise taxes on cooperations. Where do you think corporations get their money? Years ago the democrats railed against the phone company and their profits. Not the percentage based on investment but the bottom line number. They rallied public support to raise taxes on the phone companies. When they did the people cheered. That is until the people got their phone bills and saw the increase which the phone companies passed on to the customers. Since companies can’t print money like governments, they have only one source. Their customers. When the government raises taxes on corporations it’s a backdoor tax increase on you. Cheer on.
Andrew Sturman (1 month ago)
I mean truly if you're making, earning more than $10 million per year, you could afford to pay a 70% tax rate. The government in Australia want to lower the taxes on big business and the wealthy, using the adage that by reducing these taxes will lead to higher employment by more people being hired because of lower taxes. When an independent review of this ideal has shown it would only raise employment rates by 0.5 percent and this is after 10 years.
darthvader5300 (1 month ago)
Senators Elizabeth Warren and Bernie Sanders and freshman Representative Alexandria Ocasio-Cortez are turd brained nutcases, no more, no less. The KGB-GRU/FSB can take them out all too easily since we still have sleepers and moles in the U.S.
Branden M (1 month ago)
Detroit
Branden M (1 month ago)
Look at what happened to Michigan
Branden M (1 month ago)
But if you tax business they will move the business to Mexico or china were.they people 1 $ an hour
Branden M (1 month ago)
Why wont liberal millionaires and billionaires just pay extra taxes
Branden M (1 month ago)
The middle class will pay for it
Harris Iqbal (2 months ago)
If you had taxed ALL US business profits at 100% in 2017 - you only would've raised $2 Trillion. The whole idea that we are going to close the gap by taxing the Rich is absurd. This is a global economy - the Rich will just take their money and business elsewhere and cripple the economy. What is the real problem? If you think that CEOs get paid too much compared to their average worker counterpart - then make it law to limit how much more a CEO can get paid compared to average worker. Democrats seem to think that we can just tax our problems away. Since when did the government use Tax money efficiently and effectively?? You really think that giving more money to politicians is going to cure any problem whatsoever? LOL
Harris Iqbal (2 months ago)
Also - what is the root cause of depressed wages over the last 30 years? Is it not enough Taxes?? Are you guys nuts? The primary reason for depressed wages is importing foreign labor and large scale and uncontrolled immigration to the United States that have offsetted the natural wage growth across a significant range of industries across the country. On one hand - Democrats promise higher wages for the middle class magically by taxing the Rich - on the other hand they advocate mass uncontrolled migration that single handedly - serves increasing the so called "wage gap". Only one word can describe this behavior - hypocrisy. Open your eyes Sheeple!
nlh719 (2 months ago)
Simple write into law that all in non-renewable resources belong to the American people as a whole. No more hoarding wealth for a few families. We need to protect our future generations not our bank accounts.
simon dog (2 months ago)
Thumbs up for this report!!!
munib1000 (2 months ago)
So trickle down economy didn't work
Chrisco Coalminer (2 months ago)
"They took a larger piece of the pie" but if u de-incentivize business owners and entrepreneurs, then u risk them moving overseas or just not being as productive and technology and advancement is slowed down. that's bad for everyone
James Robert Clark (2 months ago)
50 million, 10 billion, 3.5 million come on these people aren't exactly broke. I do hope that Miss Cortez explores JUSTICIALISM as opposed to Democratic Socialism as I believe it supports her outlook better all so-called "Democratic Socialists," should check out THE 20 TRUTHS OF JUSTICIALISM seriously look it up.
MetDet NC (2 months ago)
Bernie Socialist and Cowfarts Cortez are so full of crap, their eyes are brown
Willard Chi (3 months ago)
The only problem I see here is that deductions and exemptions should only be given for spending that grows the economy and not given for deductions and exemptions granted because of special interest lobbying. For example, for businesses, if you hire more workers and buy more equipment, you get a tax break. You give raises and bonuses to your workers, and you get a tax break, BUtT if you buy stock or other assets or you simply pocket the money, then you don't get a tax break so you pay tax at the full rate.
Willard Chi (3 months ago)
70% is too low.
AnGry Savage (3 months ago)
Feel the Bern ...!!!
Sam Hudson (3 months ago)
I think everybody should pay 18% with no deductions or tax cuts, only fair way to tax is to tax everybody the same percentage
ft55555 (3 months ago)
Yes, it would be fair if, in addition to the flat tax, a jug of milk costs a poor person a nickel, but costs someone in the top .01% $500K. I'd be all for that.
MuhLory Bauer (3 months ago)
Sure punish the hard working ducking democrats i swear unethical is that they are goimg to turn it around amd bleed everyone dry poverty is because of the government I went from homeless to comfortable to better off now gonna lose everything again now they are trying to pay for all they have done and messed up
Bro Runner (4 months ago)
So if I earn 10million I will get 4.5 million but if I earn 11 million then I will get 3.2 million . So what's he point of earning 11 million
Soubhick Saha (4 months ago)
Why not cut down the spending by not drinking overpriced coffee and by not using luxurious apple devices?
Marine Corps (4 months ago)
People speaking of old tax rates on the wealthy know nothing of loopholes and many other means many wick the rich still paid far less.
Kai Buergisser (4 months ago)
No just no
Kim Il-sung (4 months ago)
She is hot tho
Aaron (4 months ago)
Before we talk about taxes, let's cut 90% of government programs and departments. Lets start by replacing the DMV with an ATM machine that handles ALL DMV transactions.
Brian Heinis (4 months ago)
She killed 25,000 jobs from Amazon, she wants to starve people into submission like Venezuela. She is a socialist pig
AmyX (4 months ago)
15% flat tax. Maybe after the first $24k per person. $2000 a month is more than enough to live on, especially tax free. A flat tax with no loopholes is fairer than the current system - the rich pay a lower percentage because of all their tricks, middle class ends up paying the most. Or maybe make it a status thing - oh, I paid 15% last year! No, I paid 20%! Lol.
Hrushikesh Chavan (4 months ago)
2 words. Ingvar Kampard.
Mustard Olive (4 months ago)
Here comes Venezuela.
beckomobil (4 months ago)
That defeats the purpose of trying to get rich. All these losers trying to get ur money. We should try to make poor ppl richer, not rich ppl poorer.
Gerry Smith (4 months ago)
I am one of those successful people. Steal the fruits of my labor with a 70% tax rate and I will close my business. I refuse to work more, to have it stolen. My employees will be the ones going hungry and homeless. Just because a Socialist thought I would work more just to be robbed. I and my family have assets so we will do just fine while former employees are in bread lines because of Ocasio Cortez and her 70% tax rates.
Mark Delaguaro (4 months ago)
You've got it as-backwards! It's not that the top 1/10% , wealthy, whatever, the answer is they need to pay their workers more money! Don't give it to the government give it to the people! Instead of giving themselves millions of dollars in raises!
Edruezzi (4 months ago)
Punitive taxes on the wealthy are immoral.
mgb gt (4 months ago)
It’s incredible what is happening in America today… A huge Socialist movement has erupted in the Democratic Party. For example: Alexandria Ocasio-Cortez, New York’s newest Congressional Representative, is pushing for free medical care, free college, and 70% tax rates.
Frank Strzelecki (4 months ago)
Gop are bunch of greedy scrooges who are looking for ways to spend it all only on themselves including a lot on stuff they don't really need, blessed by oh Lordie with free or very very cheap labour, and cheap labour is still a curse for them until enough migrant workers arrive to make it free. How much is enough? It's never enough for the GOP. Democrats are junkies who come up with equally primitive schemes to get rich fast and not die trying, by using government power for that to extort money from others for the cause - keeping half of it for themselves, while waste the rest on some childish schemes and causes which don't work.
Shadow Banned (4 months ago)
Jeff Bazos is paid 700 million per year he could give every employee at Amazon USA a $2000 Christmas bonus and still walk away with 200 million.
LUCY LOVE (4 months ago)
Total Destruction of America.
krion of Laguna (4 months ago)
Lmao investors will move out of america. The downfall of the great U.S.A is near bec of socialism. GOODLUCK BWHAHAHA AHAHAHA
Jie Landers (4 months ago)
I think we are top heavy in America...i don't think the rich are our problem..i think our government in general is just absolutely too big...and way too many benefits to work for the government on tax payers backs
Robo Monkey (4 months ago)
Just because some people work longer, harder, and are smarter does not mean people should be taxed more Yes I know some people inherit it, but it is still their money The rich do pay more, it is by percentage
pangmeister (4 months ago)
Here is the question. If we should close the gap between the rich and the rest in USA, should we do the same across the world? Shouldn't the same argument will apply inside a country and across the world?
Guru (4 months ago)
If the rich want to have the benefits of the American people and its economy then they need to pay much more in taxes. They wouldn’t be rich without all the institutions and infrastructure that was laid before them. It is imperative that they pay back to the people. We must reinvest into our people our infrastructure and our economy and the best way is to close loop holes and massively raise tax on the richest Americans. It’s their patriotic duty to pay it forward. It’s not left vs right. It’s about what’s the smart and ethical thing to do for the future of our nation. Can’t have a great country without a well educated and happy nation of people. So it’s time the rich pay up! The poor have taken the tax burden for far too long. #Bernie2020
Alasdair McBryde (5 months ago)
CUT THROUGH THE BULLSHIT HERE https://youtu.be/0lxD-gikpMs
LoOoL (5 months ago)
when bernie sander stop using private plane ill listen to him, just don't like hypocrite eps what his wife did with school funding
James (5 months ago)
Can someone explain to me how AOC has survived the Darwin effect?
Jetemiah Ballard (5 months ago)
I don’t want economic equality, I want a strong economy.
Emily (5 months ago)
WOW...Glad to know that she made 28k as a waitress in 2017 and she is making decisions for a country. Everyone you can type their name and look at their tax returns. I consider someone making 1 million a year wealthy. Lets tax all these politicians who are making money on the side and tax them 70%
OH Yeh! (5 months ago)
Lazy Couch potatoes are so excited ! Stay home , collect free money and play video games lol
Loren D (5 months ago)
What do they want the money for? To pay down debt? For the army? To give it away to people "unwilling" to work?
Chris Matter (5 months ago)
If the politicians knew how to budget the money they get from our tax dollars, we would not be in this situation in the first place.
George MiLo (5 months ago)
The poor have never told the rich what to do.
Ni SSS (5 months ago)
People should understand that most of the wealth has been accumulated in financial assets such as stocks. Those rich people are rich on paper and most do not realize, when they do , they pay capital gains tax of 15% if they held assets more than 1 year. That is where the focus should be. On capital gains tax, not income tax.
Sniper Trading (5 months ago)
Ocasio-Cortez Living in Luxury Navy Yard Apartment Building
FabulousKilljoy917 (5 months ago)
See many of our allies have worked this out so I don’t know why so many in the US are being greedy and saying it won’t work because it seems like history says it will. Let the rich pay their fair share!
Heather Rice (5 months ago)
Ok let's say her stupid idea goes through and the top pays 70% let's say it's 20 million and more. So, if they have to give away 70% they over time will not have to pay any taxes. So, if people refuse to work and after a couple years everyone is under the 20 million mark. Who pays for her ignorant plan? Stealing!
Anonymous (5 months ago)
*It's not higher taxes BUT WHERE IT'S BEING SPENT = MENTAL HEALTHCARE, EVERYONE HATES IT AND IT'S BANKRUPTING AMERICA, AGAIN DEMOCRATS AND REPUBLICANS HATE IT AND THE MEDICAL GASLIGHTING FEEDING IT!!*
Jen ONE (5 months ago)
There is no money in taxing the wealthy. If you are not paying attention to NYC the rich are leaving and moving their wealth to other states. This has costed NYC over 2 billion in tax revenues. Amazon just pulled out of NYC which will cost 27 billion in tax revenue money that could have went into schools and infrastructure. In Sweden, the socialist utopian ideal of AOC and Bernie Sanders. It is not the billionaires paying for their ample welfare programs. Some one in Sweden making 30k a year they can expect to pay 60% in taxes in addition to all the other taxes. Billionaires only pay 20-30%. The reason is simple the lower earners are most likely to be drawing on those welfare programs. It is far more lucrative to tax the middle and working class because they are loyal taxpayers that can't pull their money out of the system. Millionaires and billionaires quickly can and do when law and taxation threaten their wealth. So the question is how will you feel when you are inevitably paying 50% 70% in tax because all the billionaires pulled thier wealth from our country?
Elizabeth Di Francesca (5 months ago)
And what about their wealth ? Elizabeth Warren, Pelosi, Feinstein, Waters and on and on dirty rich Bernie Sanders took campaign money and bought another home he has millions
Guy Tetreault (5 months ago)
Seems that Omar and AOC are part of the rare American politicians who understand the gravity of the situation and can SPEAK with power Please America Protect them The PUPPET MASTERS who are making TRILLIONS of $$$ out of AMERICA will do EVERYTHING to silence them 😏😏😏
Yugioh Pokemon (5 months ago)
So.the poor.dont.lile that the rich save money? Well if poor people saved money they could be rich one day too
Yugioh Pokemon (5 months ago)
Dems are so stupid if they want.to tax a certain bracket to get the most money the ones they should hit.are the ones making.250 to 350k they would generate more there
Yugioh Pokemon (5 months ago)
They had more loopholes and deductions in.the 50s no one paid 90 percent even back then
Neo Shi (5 months ago)
Greedy capitalists!
Tony Stark (5 months ago)
Most people don't understand that if you raise taxes on companies they will leave to other countries. IRELAND LOWERED their corporate tax rates to 10% , nobody without a job in Ireland. If they raise it , companies just LEAVE.
Tony Stark (5 months ago)
Funny how Bernie is keeping his distance from her. Doesn't want to be close when she blows up.
prmr619 (5 months ago)
This increase has nothing to do with the taxes a business will pay. This is a personal income tax. If any business owner says that they'll close business because of this increase they're lying.
Jesse Leinard (5 months ago)
Wonder if Bernie s tapping that thing
Gunslinger1875 (5 months ago)
I hate liberals, therefore i'm for letting the rich keep the money. 😏
KEIGAN McD (5 months ago)
"You see greater level of opportunity in countries with lower income inequality" you sir, are a moron. Cambodia, Congo, Cuba, Croatia...thats just a few of the C's shall I continue down the alphabet?
godwantsplastic (5 months ago)
Those who benefit the most from a system have the most responsibility to maintaining that system.
Danny Perez (5 months ago)
Ocasio-Cortez is a simple minded anti-Semite.
Thomas Watts (5 months ago)
The lefties always stir people up by preaching about soaking the rich. Simple fact: there are not enough rich to soak to make a difference for long. Then things decline into poverty and despotism for most. Most are equally miserable. Don't fall for it!
Phil King (5 months ago)
Ask Warren Buffet how much personal income he takes from his Corp. per annum. it’s probably less than what a mid level manager makes.
Jackson Beverly (5 months ago)
They talk wealth inequality but all politicians r wealthy, they should practice what they preach and then I'll listen
U Haul (5 months ago)
95% tax on anyone with a million dollars gross income annually.
MST3Killa (5 months ago)
LOL, well it'll be awfully hard for her to tax wealthy people while she's simultaneously driving them out of her state. You can tax them at 100% and confiscate every cent of their wealth if you want, but if they don't live there, she still gets absolutely ZERO...and she's happy about that... she's happy seeing people struggle because it means she can control them with government promises, that is until the citizens say enough is enough and throw her into the river.
bigtruck guy (5 months ago)
They can keep their wealth or their heads. Not both. Pitchforks are coming for these economic terrorists....
bigtruck guy (5 months ago)
The economy is like a 10 slice pizza for 10 people. Except the first guy took 9 pieces....
henry fu (5 months ago)
I agree that the rich should be contributing more, but I don’t think they should be forced to by law.
Karla Faulkner (5 months ago)
I don't think people in this world should be able to hoard money, while other people are suffering.
shadowdance4666 (5 months ago)
I’m surprised corporate media was allowed to produce this piece which they probably buried and aired on a Sunday afternoon
ユーネポ / Yuunepo (5 months ago)
eat the rich
ユーネポ / Yuunepo (5 months ago)
*Should be 95% tax on the rich*
Ray Milligan (5 months ago)
CNBC is Fake News !
Harry Wehrman (5 months ago)
Hey I have to pay property tax on my little aluminum fishing boat, so the rich should have to pay tax on yachts, planes and other luxury play things too!
Arole Flynn (5 months ago)
So let's have open borders so we cam import more poverty, higher crime and more and more deficits.
Arole Flynn (5 months ago)
I own a company. Higher taxes? I will start laying off people. Go ahead. Make your day.
neo69121 (5 months ago)
well all in all it all comes to a scarce society that we live in... everything is limited especially basic things like electircity generation and food i believe that in the future these might be engineered to such a degree that basicaly they will become extremely cheap or even free... just imagine what would the economically viable fusion do to the world and economies it would be the new golden era, imagine what would the vertical farming with 99% efficiancey do to the production of food and also lab grown meat then imagine new materials invented and long into the future maybe even asteroid mining... i think we are still in the transition and in the very primitive stages of our own development
jackson bravo (5 months ago)
Please cover Bernie Sanders more! He’s the most well known democratic politician and he’s policies are one of the most popular! Please stop being bias!
TeddyBear (5 months ago)
Let's put the top rate at 98% and introduce Universal Basic Income.
Raussl (5 months ago)
they just compared effective tax rate in the 60's with the 36% (before deduction) of today...just WOW. Can't be more obvious with your "neutral" bias CNBC. In other words the only thing you named that seems to work against raising taxes on the top 1% earners is completely fabricated.
Jeff Lectka (5 months ago)
Wait, I know....let’s set up a system where there is no incentive to succeed in any way and everyone can just depend on government elites to decide what we get in our life. You can all be happy with the bare minimum while watching your dem plantation owners mysteriously become worth $100 million in ten years on a congressional salary.
Cynthia Rowley (5 months ago)
Socialism is nothing more than theft, a Gospel of envy! Socialism doesn't work, has never worked in fact. Look at France, many parts of Europe and Venezuela! When you tax the wealthy, they leave. Socialism only works until you run out of their money and then you hit collapse!! Socialism ALWAYS ends up in a dictatorship or huge Government control!! Trump lowered taxes for all of us across the board and because of this, companies have been coming back to the US and employing millions! We now have the best economy we've had in 60 years. Capitalism has worked time and time again!
Jeff Lectka (5 months ago)
Lol. Equality of outcomes will doom our country. Unable or UNWILLING to work?!? Why would anyone continue to innovate, build, or create when it will just be taken by a govt that only cares about itself? And, gee, who will exempt themselves from the taxes, regulations, and health care choices we little people have to deal with? Two guesses. The dems are the party who do not believe in the potential of human beings, only their capacity to serve dem interests.
indika blu (5 months ago)
Ohhhhh noooo... she wants everyone to have an equal chance 😱 and she’s pushing for common sense change? Gross!
Joe Crow (5 months ago)
Warren is the worst I'd tell her to take a hike what I have is none of her business once I pay the initial tax the rest is mine to do as I please. To say I have to tell people like Warren what I have so you can tax me for having it is crazy it's my property you're not putting GPS on my money or property period .....fake ass Indian wanna be