Senator Bernie Sanders has released his proposal for amendments in the American tax system.
The modified tax system will collect increased taxes from Americans according to their net worth.
Sanders, who himself is a millionaire, previously said that “billionaires should not exist.”
According to a report by CNBC, Sanders’ tax proposal was meant to be more aggressive than Senator Elizabeth Warren’s plan.
Sanders’ plan primarily focuses on imposing additional taxes on married people having a substantial net worth. The rates he proposed, according to CNBC, are:
- “A 1% tax on net worth above $32 million
- A 2% tax on net worth of $50 million to $250 million
- A 3% tax on net worth of $250 million to $500 million
- A 4% tax on net worth of $500 million to $1 billion
- A 5% tax on net worth of $1 billion to $2.
- A 6% tax on net worth of $2. 5 billion to $5 billion
- A 7% tax on net worth of $5 billion to $10 billion
- An 8% tax on net worth above $10 billion
- All of those brackets would be cut in half for single filers”
On the other hand, Sen.
Warren’s proposed tax structure will levy a 2% annual tax on people having a net worth in excess of $50 million and would charge 3% for net worth exceeding a billion.
Defending his proposal, Sanders said the new tax system will accrue up to $4.35 trillion in the next decade and that income would be utilized for his “Medicare for All” proposal, universal childcare, and affordable housing project.
He predicted that this tax system will reduce the net worth of billionaires to half of what it currently is in the coming 15 years.
According to the Daily Wire, “Medicare for all” project will cost a whopping $32 trillion – which means Sanders’ increased taxes can’t bear the financial load of just one of his outrageously expensive plans.
Even if the billionaires’ money is reduced to half, that would not be sufficient to pay for Sanders’ projects.
The senator has admitted on more than one occasions that for his projects to work, the middle class would have to pay more taxes.
Sanders, who describes himself as a socialist, famously said on Twitter that “billionaires should not exist.” As of now, he himself owns three houses and has a net worth of $2.5 million.
In another tweet, he said: “There should be no billionaires, we are going to tax their extreme wealth and invest in working people.”
Sanders has had a dynamic thinking about the wealthy. In 2015, he suggested giving “tax breaks to millionaires.”
In 2016, he asked the Americans if they were “comfortable to see a huge increase in millionaires and billionaires but have more people living in poverty than ever?”
He didn’t clarify if he was comfortable with such a scenario.
Billionaires should not exist. https://t.co/hgR6CeFvLa
— Bernie Sanders (@BernieSanders) September 24, 2019
Sanders’ worth surpassed the one million mark in 2016, owing to his book sales. After amassing a net worth of $2.5 million, it looks like he developed more negative thinking about billionaires than millionaires.
Senators in opposition of levying taxes only against people with a specific net worth claimed that such a tax system is discriminatory, so it is unlawful.
The American Bar Association, however, says this tax structure is not unconstitutional.