Elizabeth Warren wealth tax would shrink US economy by 1.2%, according to a new analysis

Sen. Elizabeth Warren's plan to tax the net worth of the wealthiest Americans could reduce U.S. economic growth by 1.2% over the next 30 years, according to a new analysis published this week.

The so-called "ultra-millionaire tax" would slash the country's Gross Domestic Product (GDP) -- the market value of all the goods and services produced within the U.S. -- by 0.6% in 2031 and 0.8% in 2040, according to the Penn Wharton Budget Model analysis. The tax would also have a detrimental effect on wages, reducing the hourly rate by 0.7% in 20313, 1% in 2040 and 1.2% in 2050, the model shows. READ MORE