{"id":25898,"date":"2021-10-18T13:36:41","date_gmt":"2021-10-18T17:36:41","guid":{"rendered":"http:\/\/cfif.org\/v\/freedom_line_blog\/?p=25898"},"modified":"2021-10-18T13:48:26","modified_gmt":"2021-10-18T17:48:26","slug":"elizabeth-warren-prepares-to-punish-the-u-s-economy-and-investors-with-her-misnamed-stop-wall-street-looting-act","status":"publish","type":"post","link":"https:\/\/cfif.org\/v\/freedom_line_blog\/25898\/elizabeth-warren-prepares-to-punish-the-u-s-economy-and-investors-with-her-misnamed-stop-wall-street-looting-act\/","title":{"rendered":"Elizabeth Warren Prepares to Punish the U.S. Economy and Investors with Her Misnamed “Stop Wall Street Looting Act”"},"content":{"rendered":"

As the U.S. economy shows sudden weakness<\/a>, American consumers understandably express increasing anxiety.\u00a0 A troubling new Gallup survey<\/a> reports that economic confidence has now declined to lows unsurpassed since the early days of the Covid pandemic in 2020.<\/p>\n

Undeterred by that accumulating weakness and alarm, however, Senator Elizabeth Warren (D – Massachusetts) appears<\/a> restless to strike yet another dangerous hammer blow by re-introducing her misnamed “Stop Wall Street Looting Act.”<\/p>\n

She may think that title can conceal the bill’s danger<\/a>, but Americans and elected officials mustn’t be fooled or invite the potentially catastrophic economic peril.<\/p>\n

Senator Warren\u2019s bill includes significant tax increases, as well as new legal liabilities and bureaucratic regulations on U.S. investment, and it seeks to reshape the entire American bankruptcy code in an environment already suffering excessive anxiety.\u00a0 The legislation would also begin taxing private equity as ordinary income, which makes no sense because private equity investments come with an inherent risk of loss, unlike ordinary wages.\u00a0 It would thereby eviscerate investors’ incentive to risk capital because any future earnings would be taxed in the same as ordinary wages that carry no similar risk of loss.\u00a0 When investments fail, the risk of loss is carried by the investors.\u00a0 That means lots of downside, but significantly less upside.<\/p>\n

And as studies confirm<\/a>, the economic impact of Senator Warren’s bill would be devastating.<\/p>\n

Specifically, it would kill off between 6.9 million and 26.3 million jobs across the U.S., while actually reducing<\/em> incoming federal, state and local tax revenues between a whopping $109 billion and $475 billion each year.\u00a0 It would also wipe out between $671 million and $3.36 billion in investments per year (with pension fund retirees accounting for many of those investors), and would drive many private equity firms out of business due to the bill\u2019s elevated risks and regulations.<\/p>\n

The good news is that even moderate Democrats express objection to Senator Warren\u2019s idea.\u00a0 Politico<\/em> reports<\/a> that, “It\u2019s setting up a clash with moderate Democrats who say private equity is a crucial tool to keep capital flowing to businesses and propel economic growth.”<\/p>\n

American workers, retirees, investors, public pension beneficiaries and employers shouldn’t be forced to pay the price for Senator Warren’s pet ideological agenda, and Congress must unequivocally reject her proposed bill.<\/p>\n","protected":false},"excerpt":{"rendered":"

As the U.S. economy shows sudden weakness, American consumers understandably express increasing anxiety.\u00a0 A troubling new Gallup survey reports that economic confidence has now declined to lows unsurpassed since the early days of the Covid pandemic in 2020. Undeterred by that accumulating weakness and alarm, however, Senator Elizabeth Warren (D – Massachusetts) appears restless to […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[19,2975,5152,1625,5151],"class_list":["post-25898","post","type-post","status-publish","format-standard","hentry","category-posts","tag-economy","tag-elizabeth-warren","tag-investing","tag-stocks","tag-stop-wall-street-looting-act"],"_links":{"self":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/25898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/comments?post=25898"}],"version-history":[{"count":5,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/25898\/revisions"}],"predecessor-version":[{"id":25903,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/25898\/revisions\/25903"}],"wp:attachment":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/media?parent=25898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/categories?post=25898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/tags?post=25898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}