Bernie’s Tax Plan

PUBLISHED: 1:12 PM 25 Feb 2020
UPDATED: 6:13 PM 25 Feb 2020

Sanders Explains How He’ll Pay For Socialism: Taxes, Lawsuits And Mysterious ‘Savings’

The so-called ‘fact-sheet’ seemed curiously absent of actual facts, claiming that although there are no details to back up the pie-in-the-sky assertions, incredible taxes and massive lawsuits will foot the bills for socialism.

This is a recipe for anarchy, misery, and poverty... for your own good. (Source: Real Time with Bill Maher YouTube Screenshot)

Bernie Sanders is riding the wave of ignorant voters who think that supporting socialism makes them better than other, non-altruistic people, and causing democrat party disarray. However, after he was mocked for not providing any details concerning ow he’ll pay for his promised, massive socialist programs, he released a so-called ‘fact-sheet’ that supposedly explains where the money will come from.

However, like all socialist promises, it’s filled with economy destroying idiocy and vague, unproven claims about ‘saving.’

Basically, he’ll tax the ‘wealthy,’ sue big oil companies for huge amounts of money (thereby destroying the livelihoods of millions of people), cut military spending, and generally rely on ‘savings’ that are based in fantasy land.

Fox News reported:

He released his plan on his website just minutes after promising to do so during a CNN town hall.

However, the fact-sheet highlighted for the first time that many of Sanders’ expected cost-saving measures relied on conjecture and best-case scenarios. For example, Sanders’ document asserts that a “modest tax on Wall Street speculation … will raise an estimated $2.4 trillion over ten years” and, in one fell swoop, make all “public colleges, universities and trade schools tuition-free … and cancel all student debt over the next decade.”

The proposal specifically would place a “0.5 percent tax on stock trades – 50 cents on every $100 of stock – a 0.1 percent fee on bond trades, and a 0.005 percent fee on derivative trades.”

The National Review has likened a tax on so-called “Wall Street speculation” to a de facto tax on savings, saying the Sanders plan is untested and “would mean paying $25 to the federal government every time you traded $5,000 worth of stock — or five times what you’d pay the typical online brokerage in fees. … Over the long term, that imposes serious costs on actively traded funds such as the ones containing many Americans’ retirement funds.”

Meanwhile, housing for everyone would cost $2.5 trillion over ten years, and would be paid entirely by a “wealth tax on the top one-tenth of one percent,” raising a total of $4.35 trillion, according to Sanders’ fact-sheet. Similarly, “universal childcare and pre-school to every family in America” would be provided with a wealth tax on the “top 0.1 percent,” again raising more than $4 trillion. The taxes would target wealthy individuals’ “net worth,” not simply their income.

Sanders’ plan did not discuss the possible stock market ramifications of a major seizure of some of this wealth, much of which is held in markets and other investments. The plan also did not discuss how the government would be able to reliably obtain the money, given that many investments could simply be liquidated or transferred elsewhere before his administration took office.

Instead, Sanders’ proposal said only that it would eventually establish a “national wealth registry and significant additional third party reporting requirements,” buff up IRS funding and, and “include enhancements to the international tax enforcement.”

The plan would require the IRS “to perform an audit of 30 percent of wealth tax returns for those in the 1 percent bracket and a 100 percent audit rate for all billionaires,” and would include a “40 percent exit tax on the net value of all assets under $1 billion and 60 percent over $1 billion for all wealthy individual seeking to expatriate to avoid the tax.”

A new “income inequality tax on large corporations that pay CEOs at least 50 times more than average workers” would take care of $81 billion in past-due medical debt, Sanders further claimed.

Sanders’ projections also stated without providing details that his Green New Deal plan would create “20 million new jobs,” thus ensuring $2.3 trillion in “new income tax revenue.”

Additionally, Sanders cited “economists” as he promised that by “averting climate catastrophe we will save: $2.9 trillion over 10 years, $21 trillion over 30 years and $70.4 trillion over 80 years.”

No information was provided to validate that assertion, although the Trump administration’s National Climate Assessment found that it was possible climate change could reduce the size of the U.S. economy by 10 percent by the end of the century, assuming no substantial changes in technology (including carbon-reducing innovations) or policy occur in the meantime.

Sanders claimed to be able to raise “$3.085 trillion by making the fossil fuel industry pay for their pollution, through litigation, fees, and taxes, and eliminating federal fossil fuel subsidies.” He has repeatedly suggested on the campaign trail that he would direct the Justice Department to pursue the fossil fuel industry, although it was unclear how successful that legal strategy would be.

“If we do not act, the U.S. will lose $34.5 trillion by the end of the century in economic productivity,” Sanders alleged — putting the consequences of climate change in stark economic terms.

On health care, Sanders has previously vowed to provide benefits, including health care, even to illegal immigrants.

It’s unclear how many people that unprecedented proposal would cover, especially given that such a plan would likely lead to a rise in immigration to the United States and that the number of illegal immigrants presently in the country is unknown. The issue is not mentioned at all in Sanders’ fact-sheet.

Instead, although some nonpartisan estimates have put the cost of Sanders’ “Medicare-for-all” proposal at over $32 trillion, Sanders’ fact-sheet simply doubled down on a “proposed a menu of financing options that would more than pay” for the program.

Among the available options: “creating a 4 percent income-based premium paid by employees, exempting the first $29,000 in income for a family of four,” as well as imposing a 7.5 percent “income-based premium paid by employers, exempting the first $1 million in payroll to protect small businesses.”

Other savings would come from eliminating “health tax expenditures, which would no longer be needed under Medicare for All,” and “raising the top marginal income tax rate to 52% on income over $10 million.”

Reducing defense spending by “$1.215 trillion” would be achievable by “scaling back military operations on protecting the global oil supply,” Sanders’ fact-sheet continued. Defense spending is slated to total $934 billion from Oct. 1, 2020 to Sept. 30, 2021.

As the numbers were released, Sanders doubled down on his comments praising Cuban dictator Fidel Castro’s “literacy program,” saying it was a positive outcome from the violent Cuban Revolution that literacy rates quickly rose.

The pro-Castro remarks had drawn scrutiny even from Democratic lawmakers, especially in Florida, which has a large Cuban-American population.

Essentially, the ‘fact-sheet’ outlines exactly how Sanders will introduce a slave-society that is characterized by lack, want, and misery…. aka socialism.