Details and Analysis of Senator Bernie Sanders’s Tax Plan
January 28, 2016
By Alan Cole, Scott Greenberg
Key Findings:
. Senator Sanders (I-VT) would enact a number of policies that would raise payroll taxes and individual income taxes, especially on high-income households.
. Senator Sanders’s plan would raise tax revenue by $13.6 trillion over the next decade on a static basis. However, the plan would end up collecting $9.8 trillion over the next decade when accounting for decreased economic output in the long run.
. A majority of the revenue raised by the Sanders plan would come from a new 6.2 percent employer-side payroll tax, a new 2.2 percent broad-based income tax, and the elimination of tax expenditures relating to healthcare.
. According to the Tax Foundation’s Taxes and Growth Model, the plan would significantly increase marginal tax rates and the cost of capital, which would lead to 9.5 percent lower GDP over the long term.
. On a static basis, the plan would lead to 10.56 percent lower after-tax income for all taxpayers and 17.91 percent lower after-tax income for the top 1 percent.
. When accounting for reduced GDP, after-tax incomes of all taxpayers would fall by at least 12.84 percent.
more:
http://taxfoundation.org/article/details-and-analysis-senator-bernie-sanders-s-tax-plan
DO SOMETHING!
| 