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The Bernie Sanders Tax Plan

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  • Liberal Democrat
    Democrat
    Colorado Springs, CO
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    Josh Borro, New York Times, February 8, 2016: Bernie Sanders's Tax Plan Would Test an Economic Hypothesis

    Economists' views on the Bernie Sanders "political revolution" and how to pay for it, will differ...some for it with minor qualifications, some against it for obvious political reasons, and some just wanting to show how smart they are. You can browse the internet and cherry pick an analyst that fits the category of "confirmation bias". I have read stuff by Josh Borro over the years and have respect for his insight. Here are a few extracts from his article in the NYT.

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    "Mr. Sanders has proposed a headline top tax rate of 52 percent, applying only to incomes over $10 million. But that’s just the federal income tax. When you combine it with other taxes that apply to income, like existing payroll taxes and new ones Mr. Sanders would impose to pay for Social Security, single-payer health care and family leave, and then add those on top of taxes levied by state governments, it would add up to a combined tax rate of over 73 percent on the highest incomes, more than 20 points higher than today. That’s in the average state — maximum rates in high-tax jurisdictions like California and New York City would be even higher

    "Mr. Sanders’s 73 percent rate would apply only to ordinary income and only to people making over $10 million a year, which is not very many people. But even for what you might call garden-variety rich people, Mr. Sanders’s plan would push rates near the revenue maximizing level: His plan would result in an all-in tax rate of just over 65 percent on income between $500,000 and $2 million."

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    You can read the rest of his article in the NYT at the above link. I ask, is it doable?

  • Center Left
    Independent
    Central, FL
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    I wonder also. Those people are used to under paying and they are going to just accept huge increases ? Seems unlikely. Imagine the coffee room talk........ If Sanders is elected I'm probably going to have to let some people go.....

    Why is that boss/business owner ? Well let's just say my expenses would be going up.

  • Independent
    Ft.myers, FL
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    TJ Wrote:

    I wonder also. Those people are used to under paying and they are going to just accept huge increases ? Seems unlikely. Imagine the coffee room talk........ If Sanders is elected I'm probably going to have to let some people go.....

    Why is that boss/business owner ? Well let's just say my expenses would be going up.

    Don't worry Tony, you always can get a job at Trumps casino's; Bernie will not win, I guarantee it. He has not yet run into the brick wall the GOP is building right now. But the time will come. Trump said, he will be the greatest President ever that God has placed in this country. Thus don't worry, have some champagne!!
  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    Don't forget that rich people were rich, got richer, stayed rich and ran businesses very well when we had a top tax rate of 98%. People that make money can't help but make money under any conditions.
  • Strongly Liberal Democrat
    Democrat
    Dallas, TX
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    Compliance and enforcement costs will be sky high. Will need to hire more IRS agents + unclog courts.

    Politically this not doable without political revolution. Have to wait it out until 2018 Mid-terms.

    Still, the question we should start with is why the tax increases are needed in the first place?

    Bernie should explain there are many ways to do single payer and that he wants to bring that discussion to the highest levels. His plan assumes things that are politically required and based on ideology, not on economics.

    It is dangerous to put tax increases on rich people before helping the poor and middle class with fiscal support, whatever it may be.

  • Independent
    Ft.myers, FL
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    Carlitos Wrote:

    Compliance and enforcement costs will be sky high. Will need to hire more IRS agents + unclog courts.

    Politically this not doable without political revolution. Have to wait it out until 2018 Mid-terms.

    Still, the question we should start with is why the tax increases are needed in the first place?

    Bernie should explain there are many ways to do single payer and that he wants to bring that discussion to the highest levels. His plan assumes things that are politically required and based on ideology, not on economics.

    It is dangerous to put tax increases on rich people before helping the poor and middle class with fiscal support, whatever it may be.

    Carlitos; In Europe a sliding scale of taxes has been used for ages; in France the rich pay up to 75% tax, a poor man only about 10%, the VAT in the Netherlands is 21%, but regardless of that there are plenty of rich people who are not suffering but have gorgeous houses on the Riviera. Sorry this remains a backwards thinking country.
  • Strongly Liberal Democrat
    Democrat
    Dallas, TX
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    The Eurozone member nations are currency users, not issuers.

    Have very different political systems. A lot more is possible under Parliamentary systems where parties must compromise in order to form functioning majority led governments.

    I am not saying that Bernie's tax increases won't work, but I am saying that it is going to be politically difficult.

    And I'm saying that the purpose of Bernie's tax increases should not be to raise revenue to pay for single payer, but combat wealth inequality (as far as I can tell).

    Hence, if the tax increases are not possible, that's no reason not to do single payer.

  • Independent
    Ft.myers, FL
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    Carlitos Wrote:

    The Eurozone member nations are currency users, not issuers.

    Have very different political systems. A lot more is possible under Parliamentary systems where parties must compromise in order to form functioning majority led governments.

    I am not saying that Bernie's tax increases won't work, but I am saying that it is going to be politically difficult.

    And I'm saying that the purpose of Bernie's tax increases should not be to raise revenue to pay for single payer, but combat wealth inequality (as far as I can tell).

    Hence, if the tax increases are not possible, that's no reason not to do single payer.

    Carlitos, yes indeed the political system here is at fault; it was partly copied from the Brit's who always had a screwed up system until today. Our Constitution and lawyers, who twist and turn laws, makes it an mess; nothing in this country can be done via common sense. The more "paper" and bureaucracy the happier they are.