According to Bernie Sanders’ rhetoric, the key to prosperity is making the rich pay more. He makes it sound like the rich will pay the majority of his proposed socialist healthcare program.
But then Bernie Sanders admits that the middle class will have their taxes raised under his regime. In fact, every earner’s taxes will go up. He hides some of the damage he is planning to do, but the bottom line is that the middle class is going to be funding the majority of his expansion of government.
Because, for all his talk about the rich, he knows the middle class are the ones who have money. His tax plan proves it.
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As Daniel Bier writes at the Foundation for Economic Education,
Willie Sutton was one of the most infamous bank robbers in American history. Over three decades, the dashing criminal robbed a hundred banks, escaped three prisons, and made off with millions. Today, he is best known for Sutton’s Law: Asked by a reporter why he robbed banks, Sutton allegedly quipped, “Because that’s where the money is.”
Sutton’s Law explains something unusual about Bernie Sander’s tax plan: it calls for massive tax hikes across the board. Why raise taxes on the middle class? Because that’s where the money is.
For a breakdown of Sanders’ proposed tax increases (on everyone) take a look at this Vox article.
The writer, Dylan Matthews, also tweeted about it.
— Dylan Matthews (@dylanmatt) January 22, 2016
That will be devastating.
Matthews was right to include income and payroll taxes on the same graph. They both come out of what you earn. Saying “the employer pays it,” in the case of payroll taxes, is a subterfuge. Employers take what would have been the employee’s wages to pay the tax. Sanders will raise most of his money from the middle class.
By the way, liberals commonly advocate taxes as a way of discouraging purchases, like taxing soda to make people cut back their soda consumption. So what do they expect to happen to working and hiring when they raise taxes on income and payroll?
Ironically, by targeting the middle class, Bernie Sanders admits as well that corporations tend to serve the middle class. His tax proposals show why most of them, especially those that don’t sell to governments, try to make goods and services as inexpensive as possible. Selling luxuries to the rich works for some companies. But the bigger market is in the middle class. Companies have an incentive to provide items that middle class consumers can afford.
Buried inside a Congressional Budget Office report this week was this nugget: when it comes to individual income taxes, the top 40 percent of wage earners in America pay 106 percent of the taxes. The bottom 40 percent…pay negative 9 percent.
You read that right. One group is paying more than 100 percent of individual income taxes, the other is paying less than zero.
Sanders is trying to get the middle class to light torches and take up pitchforks because of the wealthy. But he plans to burn down middle class homes.