This is how Bernie Sanders will pay for proposed socialist programs
Bernie Sanders released a fact-sheet Monday night explaining that he’d pay for his sweeping new government programs through new taxes and massive lawsuits, as well as by slashing spending on the military, among other methods.
He released his plan on his website just minutes after promising to do so during a CNN town hall.
College for All and Cancel Student Debt
It will cost $2.2 trillion to make public colleges, universities and trade schools tuition-free and to cancel all student debt over the next decade. It is fully paid for by a modest tax on Wall Street speculation that will raise an estimated $2.4 trillion over ten years. Click here to read the plan.
Expanding Social Security
Bernie’s bill to expand Social Security will increase benefits for low-income senior citizens and people with disabilities by more than $1,300 a year. It is fully paid for by making the wealthiest 1.8 percent of Americans – those with incomes over $250,000 a year – pay the same rate into Social Security as working families.
This bill will also extend the solvency of Social Security into the year 2070 – ensuring that Social Security can pay every benefit owed to every eligible American for the next 50 years.
Click here to read the plan.
Housing for All
Bernie’s proposal to guarantee housing as a human right and to eliminate homelessness will cost $2.5 trillion over the next decade. It is fully paid for by a wealth tax on the top one-tenth of one percent – those who have a net worth of at least $32 million. (Bernie’s wealth tax will raise a total of $4.35 trillion.)
Click here to read Bernie’s plan to tax on extreme wealth.
Bernie’s proposal to guarantee universal childcare and pre-school to every family in America who needs it will cost $1.5 trillion. It is fully paid for by a wealth tax on the top 0.1 percent – those who have a net worth of at least $32 million. (Bernie’s wealth tax will raise a total of $4.35 trillion.)
Click here to read the tax plan.
Eliminating Medical Debt
Bernie has introduced a proposal to eliminate all of the $81 billion in past due medical debt held by 79 million Americans. It is fully paid for by establishing an income inequality tax on large corporations that pay CEOs at least 50 times more than average workers. .
Click here to read the tax plan.
Green New Deal
The $16.3 trillion climate change proposal that Bernie has introduced will fundamentally transform our energy system away from fossil fuel and towards energy efficiency and renewable energy. It will also create 20 million good-paying union jobs in the process.
It is fully paid for by:
- Raising $3.085 trillion by making the fossil fuel industry pay for their pollution, through litigation, fees, and taxes, and eliminating federal fossil fuel subsidies.
- Generating $6.4 trillion in revenue from the wholesale of energy produced by the regional Power Marketing Administrations. This revenue will be collected from 2023-2035, and after 2035 electricity will be virtually free, aside from operations and maintenance costs.
- Reducing defense spending by $1.215 trillion by scaling back military operations on protecting the global oil supply.
- Collecting $2.3 trillion in new income tax revenue from the 20 million new jobs created by the plan.
- Saving $1.31 trillion by reduced the need for federal and state safety net spending due to the creation of millions of good-paying, unionized jobs.
- Raising $2 trillion in revenue by making large corporations pay their fair share of taxes.
- By averting climate catastrophe we will save: $2.9 trillion over 10 years, $21 trillion over 30 years and $70.4 trillion over 80 years.
- If we do not act, the U.S. will lose $34.5 trillion by the end of the century in economic productivity.
Click here to read the tax plan.
Medicare for All
According to a February 15, 2020 study by epidemiologists at Yale University, the Medicare for All bill that Bernie wrote would save over $450 billion in health care costs and prevent 68,000 unnecessary deaths – each and every year.
Since 2016, Bernie has proposed a menu of financing options that would more than pay for the Medicare for All legislation he has introduced according to the Yale study.
These options include:
- Creating a 4 percent income-based premium paid by employees, exempting the first $29,000 in income for a family of four.
In 2018, the typical working family paid an average of $6,015 in premiums to private health insurance companies. Under this option, a typical family of four earning $60,000, would pay a 4 percent income-based premium to fund Medicare for All on income above $29,000 – just $1,240 a year – saving that family $4,775 a year. Families of four making less than $29,000 a year would not pay this premium.
(Revenue raised: About $4 trillion over 10 years.)
- Imposing a 7.5 percent income-based premium paid by employers, exempting the first $1 million in payroll to protect small businesses.
In 2018, employers paid an average of $14,561 in private health insurance premiums for a worker with a family of four. Under this option, employers would pay a 7.5 percent payroll tax to help finance Medicare for All – just $4,500 – a savings of more than $10,000 a year.
(Revenue raised: Over $5.2 trillion over 10 years.)
- Eliminating health tax expenditures, which would no longer be needed under Medicare for All.
(Revenue raised: About $3 trillion over 10 years.)
- Raising the top marginal income tax rate to 52% on income over $10 million.
(Revenue raised: About $700 billion over 10 years.)
- Replacing the cap on the state and local tax deduction with an overall dollar cap of $50,000 for a married couple on all itemized deductions.
(Revenue raised: About $400 billion over 10 years.)
- Taxing capital gains at the same rates as income from wages and cracking down on gaming through derivatives, like-kind exchanges, and the zero tax rate on capital gains passed on through bequests.
(Revenue raised: About $2.5 trillion over 10 years.)
- Enacting the For the 99.8% Act, which returns the estate tax exemption to the 2009 level of $3.5 million, closes egregious loopholes, and increases rates progressively including by adding a top tax rate of 77% on estate values in excess of $1 billion.
(Revenue raised: $336 billion over 10 years.)
- Enacting corporate tax reform including restoring the top federal corporate income tax rate to 35 percent.
(Revenue raised: $3 trillion ,of which $1 trillion would be used to help finance Medicare for All and $2 trillion would be used for the Green New Deal.)
- Using $350 billion of the amount raised from the tax on extreme wealth to help finance Medicare for All.