Bernie has built a platform with the idea that the wealthy should pay their “fair share” of the tax bill for the country.
Supposedly, this would help enable the government to provide so many more services such as his Medicare for All plan that he’s promised if he’s elected President.
Sanders said, “What we will do — what we will do is have a four percent tax on income exempting the first $29,000. All right, good. You — you’re better at arithmetic than I am. Because what that means is if you are that average family in the middle who makes $60,000 a year, that means we’re going to tax you on $31,000 at four percent.”
Here are a few problems with the statement that Bernie made.
First of all, this $29,000 that is exempt from income tax. Is this $29,000 for a married couple or for single individuals? As of right now, we know that the tax situation favors single individuals or especially those who live with their significant other and have children though remain unmarried. I can’t tell you how mad it made me years ago when I used to work for a company that had a lot of people just like that who would get back $8,000 per year in taxes because they were unmarried and had kids.
It’s a penalty for doing the right thing. The government is incentivizing people to remain out of wedlock. To be honest, my sister was in that spot and I asked her about it one day and she said that should would bring in less money if she did things the right way.
But even with that 4%, that is going to be an increase for almost everyone in those classes. He said it would be an increase and it probably is. Just go take a look at your effective tax rate and see if it’s lower than 4%. I’ll bet it is.