Democratic proposals like those from Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez targeting the wealthy are “economically illiterate,” a top economic advisor to President Donald Trump told CNBC on Monday.
Warren, who is exploring a 2020 Democratic run for president, is proposing an additional 2 percent tax every year on households with assets over $50 million and 3 percent on households with assets over $1 billion. Ocasio-Cortez from New York wants a 70 percent marginal tax rate on income above $10 million.
Since those proposals, Senate Minority Leader Chuck Schumer and independent Sen. Bernie Sanders, have called on Congress to limit stock buy-backs. They unveiled the proposal in a New York Times op-ed published Sunday.
“I wish some economist would go and talk to these guys on how buy-backs work,” Kevin Hassett, chairman of the Council of Economic Advisers, said on “Squawk Box.” “It’s very disappointing that over and over again I see the Democrats pursue really economically illiterate proposals just because they think they sound good politically.”
Democrats should be “ashamed,” he added.
The elite financiers that attended the World Economic Forum last month were worried about the 70 percent tax rate on earnings above $10 million proposed by Cortez.
