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Trump advisor Hassett: Warren and Ocasio-Cortez's tax proposals targeting the wealthy are 'economically illiterate'

Key Points
  • Democratic proposals like those from Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez targeting the wealthy don't make sense, Kevin Hassett says.
  • "I see the Democrats pursue really economically illiterate proposals just because they think they sound good politically," says the White House advisor.
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The Democrats need an economic explainer, says Trump economic advisor Kevin Hassett

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 buybacks. They unveiled the proposal in a New York Times op-ed published Sunday.

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"I wish some economist would go and talk to these guys on how buybacks work," Kevin Hassett, chairman of the president's Council of Economic Advisors, 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," added Hassett, a former economist at the American Enterprise Institute and ex-senior economist at the Federal Reserve.

Democrats such as Ocasio-Cortez see their proposals as pushing the wealthy to pay their "fair share of taxes." The elite financiers that attended the World Economic Forum last month were worried about Ocasio-Cortez's 70 percent tax rate and Republicans were skeptical whether a proposal would actually work.

Hassett appeared on CNBC after the release of the better-than-expected jobs report for the month of January. Job growth for the month shattered expectations, with nonfarm payrolls surging by 304,000 despite a government shutdown.

He said he got a "fist bump" from the president on the jobs report and the direction of the economy.