From TaxVox: Sanders proposes historic tax increase to fund new social spending

March 4, 2016

Democratic presidential hopeful Bernie Sanders has proposed a tax increase of $15.3 trillion over the next decade, according to a new analysis by the Tax Policy Center. The tax hikes, which would help finance Senator Sanders’s ambitious new spending programs for health care, education, and family leave, would be the largest since World War II.

Sanders would raise taxes by 6.4 percent of Gross Domestic Product over the next 10 years, and by 7 percent of GDP, or more than $25 trillion, over the following decade. In 2017, US households would face an average tax hike of nearly $9,000.

Under the Sanders plan, every income group would pay higher taxes on average, though he’d aim most of the tax increases at the highest-income households. TPC found that 38 percent of the tax increases would be paid by the highest income 1 percent of households, and nearly a quarter would be paid by the top 0.1 percent.

On average, the lowest-income households would pay about $165 more than under current law, reducing their after-tax incomes by 1.3 percent. Middle-income taxpayers would pay about $4,700 more, or 8.5 percent of their after-tax income. At the same time, those in the top 1 percent would pay an average of $525,000 more, reducing their after-tax incomes by one-third; and those in the top 0.1 percent would pay nearly $3.1 million more, slashing their after-tax incomes by almost 45 percent.

Analysis of Sanders tax plan

Read the rest on TaxVox.

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