Skull Pilot
Diamond Member
- Nov 17, 2007
- 45,446
- 6,164
- 1,830
The most common complaint I hear about Sanders is that he is going to tax you to death and give everyone free stuff.
1st of all, that's an oxymoron. If I pay more in taxes how are the things I get in return considered free.
Now to the specific complaint. The Sanders camp put out a press release outlining whose taxes he would raise and by how much.
The top marginal rate would increase from 39.6% to 52%. That seems like a substantial amount. No one pays the top marginal rate. After deductions and loopholes, your effective rate is much lower.
Example, on mitt Romney's 2011 tax form he payed 13% in federal tax even though he was in the top bracket.
DONT CONFUSE MARGINAL TAX RATES WITH EFFECTIVE TAX RATES.
He also wants a 0.5% tax on stock speculation.
In context this isn't near as dramatic as we are lead to believe.
Let's remember in the 3 decades after WW2 the top marginal rate was between 72%-90%. That's a HUGE tax rate and yet our economy experienced massive growth. So, empirically Bernie's tax rate would be much lower than the tax rate during our period of greatest economic growth.
His final tax would be to fund his Medicare for all plan. A 9% increase.
Now let's put that in context. I make $19 an hour and before Obama care went into effect I was paying $150 a week for private insurance with a $3000 deductible and $100 copays. Under Bernie's plan my taxes would increase by $70 a week, so do the math. $70 a week with no deductible or copay versus $150 a week plus copay and deductible.
Seems like Bernie's plan is cheaper than even PRE OBAMA insurance.
Now I know that no one likes discussing issues in context but there you go.
Slight increases in taxes for a substantial return.
College tuition, infrastructure, affordable healthcare. Yeah I will pay a little more for these things.
You obviously do not understand that Romney was not in the top bracket.
His income is mostly from capital gains which is classified differently than earned income
you might want to learn about the tax codes a little bit before you decide to tell people how they work
No, his earned income put him into the top bracket. Plus capital gains tax was over 20% if I am not mistaken.
The top bracket is $400000 he was definitely in that bracket. Then add to it his investment earnings. His deductions and loopholes definitely had him paying a lower rate
Mitt Romney releases tax return for 2011, showing he paid 14.1 percent tax rate
Mitt Romney paid $1.9 million in taxes on $13.69 million in income in 2011, most of it from his investments, for an effective rate of 14.1 percent, according to hundreds of pages he released Friday in a move to quiet political controversy over his personal finances.