Bernie Sanders mislead voters when he claimed he would not raise middle class taxes by “one nickel.”
“And under our proposal, the top one-tenth of 1% will be paying more in taxes. But 99.9% of Americans will not see their taxes go up by one nickel,” Sanders said during a town hall in Las Vegas in September.
It is unclear if Sanders was referring only to his rent control plan (which will certainly impose massive government costs and property rights infringements on homeowners and also hurt tenants) or to his entire policy plan. In any case, Sanders will be picking the pockets of middle class taxpayers. Whether it is the right pocket, left pocket, or back pocket is less interesting.
Sanders supports “Medicare for All” which would raise taxes substantially on middle class Americans. Sanders has proposed a 4% tax on all income over $29,000 in addition to a new tax on employers, which would have an impact on middle class Americans. According to a document from Sanders, the employer tax could be as much as 7%.
Sanders is also considering raising the capital gains tax which would harm Americans’ ability to build a nest egg and hurt the value of their homes, farms, and businesses.
In addition, Sanders plans to repeal the Tax Cuts and Jobs Act, according to CNN, which would force middle class Americans to pay thousands more in taxes.
Sanders’s promise to repeal the tax cuts is a promise to raise taxes. If the tax cuts were repealed:
- A family of four earning the median income of $73,000 would see a $2,000 tax increase.
- A single parent (with one child) making $41,000 would see a $1,300 tax increase.
- Millions of low and middle-income households would be stuck paying the Obamacare individual mandate tax.
- Utility bills would go up in all 50 states as a direct result of the corporate income tax increase.
- Small employers will face a tax increase due to the repeal of the 20% deduction for small business income.
- The USA would have the highest corporate income tax rate in the developed world, higher than the United Kingdom (19 percent), China (25 percent), Canada (26.8 percent), and Ireland (12.5 percent).
- Taxes would rise in every state and every congressional district.
- The Death Tax would ensnare more families and businesses.
- The AMT would snap back to hit millions of households.
- Millions of households would see their child tax credit cut in half.
- Millions of households would see their standard deduction cut in half, adding to their tax complexity as they are forced to itemize their deductions and deal with the shoebox full of receipts on top of the refrigerator.
If you want to stay up-to-date on Democratic candidates and their threats to raise taxes, visit www.atr.org/HighTaxDems.