A just released report from the Tax Foundation has some bad news for “Bernie” Bernard Sanders (I-VT) and his followers. While Sanders has been traversing the nation calling for $18 TRILLION in new spending over the next decade, many have wondered how the socialist Senator would pay for such largesse. Bernie’s response has been… “I’m going to raise taxes.”
However, the Tax Foundation has some news for the Democrat candidate – his tax plans won’t raise nearly the amount of money he hopes and they’ll essentially kill 6-million full-time jobs!
Over the past few months, Senator Bernie Sanders (I-VT) has released details of changes he would make to the federal tax code. His plan would increase marginal tax rates on all taxpayers, through higher individual income tax rates and two new payroll taxes. The plan includes several provisions aimed at high-income households: it would raise the top marginal income tax rate to 54.2 percent, tax capital gains and dividends as ordinary income, replace the alternative minimum tax with a new limit on itemized deductions, and expand the estate tax. In addition, the plan would create a new financial transactions tax and move the U.S. toward a worldwide tax system by ending the deferral of foreign-source business income.
Our analysis finds that the plan would increase federal revenues by $13.6 trillion over the next decade. The plan would also increase marginal tax rates on both labor and capital. As a result, the plan would reduce the size of gross domestic product (GDP) by 9.5 percent over the long term. This decrease in GDP would translate into an 18.6 percent smaller capital stock and 6.0 million fewer full-time equivalent jobs. After accounting for the economic effects of the tax changes, the plan would end up increasing federal tax revenues by $9.8 trillion over the next decade.
Bernie Sanders’ plan to raise taxes by $13.6 trillion over the next decade would have a devastating effect on the economy, according to a detailed analysis released on Thursday by the Tax Foundation.
The analysis concludes his myriad tax hikes would cut GDP growth by 9.5%, reduce the nation’s capital stock by 18.6% and result in 6 million fewer full-time equivalent jobs.
“Sanders’ plan would significantly increase marginal tax rates on capital and labor income,” authors Alan Cole and Scott Greenberg say, “which would result in a substantial reduction of the size of the U.S. economy in the long run.”
If these are the kind of helpful ideas that Bernie and his fellow liberals have to “fix” our nation, we better start looking for help elsewhere, and quick. Socialism doesn’t work. Higher taxes and greater regulations don’t improve economic conditions, they make things worse. In the case of Bernie’s ideas, they make things worse by killing 6 million new jobs and forcing the welfare state to expand even more. Bernie’s bad for business, and he’s bad for America.
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