Wall Street heavyweights on Cortez's proposed 70% super-rich tax : News : Money Times

News Feb 08, 2019 10:25 AM EST

Wall Street heavyweights on Cortez's proposed 70% super-rich tax

One of the hottest topics at the World Economic Forum in Davos, Switzerland has been Alexandria Ocasio-Cortez's proposed 70% marginal tax rate on all income above $10 million.
There have been many headlines out of Davos with business leaders calling the proposed tax disastrous, scary, and saying it will have a huge impact on the economy. We sat down with three financial heavyweights to find out what they think everyone is missing about this discussion.
The general consensus was that while such a hefty tax would hurt the economy, it simply doesn't effect enough people to be a major issue.
Moelis & Co. founder and CEO Ken Moelis says there isn't a problem with a high tax on income above $10 million dollars because there isn't that much income to tax above that level. Marginal tax rates need to start around $250,000 in order to have an impact. And a 70% tax rate at that level "would crush the economy."

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