Before the usual crowd starts screaming about “socialism” or something like that, one needs to calmly examine the chart provided by Forbes below. (Note: the tax-brackets are based on married couples who jointly file their taxes.)
Sanders’ plan has taxes remain exactly the same for couples earning less than $151,900 a year, or 6,329.16 dollars per month for an individual.
In comparison, Trump’s plan would have taxes eliminated for individuals earning less than $773 a month, while reducing taxes all around. Those who earn more than $9,643 a month stand to gain the most, as the tax rate remains stagnant at 25% all the way to the very highest earners.
Under Trump’s plan, a person earning $5,000,000 a year or more would save $730,000 or more per year in taxes while a person earning $9,275 a year or less stands to gain a maximum of $927.5 a year- or, a single person who earns $5,000,000 a year would save the equivalent of 787 of his fellows at the lowest tax bracket.
Not a bad deal for the super rich, though everyone pays less for infrastructure that the super rich typically do not require (public schools, etc) and the government waste that only benefits corporations. Eliminating taxes on the lowest bracket might be a good idea though.
Sanders’ proposed highest rate for individual income tops out at 52%, 12.4% higher than previously, and the highest since the 1980s when taxes maxed out at 70% under Jimmy Carter (interestingly, .
This tax on income would not affect capital gains and dividends (the preferred means of income earning for the very rich)… if it were not Sanders’ plan to also get rid of this preferential treatment once and for all. He will have this sort of income classified together with earned income and thus be taxed at the same rate, and not maxed at 23.8% as it is currently.
These changes are estimated to raise 235 billion dollars in tax revenue annually.