Tag Archives: Clown

New study: Bernie Sanders’ budget would raise taxes $13.6 trillion over a decade

Democrats took control of government spending in 2007
Democrats took control of government spending in 2007

It’s very strange to me that young people seem to like Bernie Sanders’ rhetoric so much. Have they really considered what his budget would require?

Here’s an article from the Washington Free Beacon that talks about a non-partisan study from the Tax Foundation think tank.

Excerpt:

(I., Vt.) proposed tax plan would raise taxes by $13.6 trillion over the next decade and reduce the economy’s size by 9.5 percent, according to an analysis by the Tax Foundation.

While on the campaign trail, the senator has proposed $18 trillion in spending over the next decade. His plan includes $15 trillion for a government-run single-payer health care plan and trillions more for Social Security, roads and bridges, higher education, paid family and medical leave, and private pension funds, to name just a few.

Sanders’ proposed tax plan will increase marginal tax rates and the cost of capital, a move that will significantly reduce GDP, lower wages, and eliminate jobs.

According to the Tax Foundation, Sanders aims most of his tax provisions at high-income households, creating four new income tax brackets with rates of 37 percent, 43 percent, 48 percent, and 52 percent. Additionally, Sanders would tax capital gains and dividends for households with income over $250,000 and create a 2.2 percent income-based health care premium.

However, as Sanders has admitted, his plan also includes tax increases on the middle class. “We will raise taxes. Yes, we will,” Sanders said at the CNN town hall last weekend.

“A majority of the revenue raised by Sanders plan would come from a new 6.2 percent employer-side payroll tax, a new 2.2 percent broad-based income tax and the elimination of tax expenditures relating to healthcare,” the analysis explains.

According to a recent report from the Congressional Budget Office, even without Sanders’ tax plan the nation’s economy is projected to expand at a rate much lower than in recent decades. Sanders’ plan would lower the growth rate further, as its proposed marginal tax rate increases on labor and capital would reduce GDP by 9.5 percent in the long term.

“At the center of my campaign is how we’re going to raise wages,” Sanders said at the first Democratic debate. “Yes, of course, raise the minimum wage, but we have to do so much more, including finding ways so that companies share profits with the workers who helped to make them. And then we have to figure out how we’re going to make the tax system a fairer one.”

“And in my view what we need to do is create millions of jobs by rebuilding our crumbling infrastructure; raise the minimum wage to $15 an hour; pay equity for women workers; and our disastrous trade policies, which have cost us millions of jobs; and make every public college and university in this country tuition-free,” he said.

After accounting for reductions in economic growth, Sanders’ plan would lead to 12.84 percent lower after-tax incomes for all taxpayers, 6 million fewer full-time jobs, and an 18.6 percent smaller capital stock.

Let’s take a look at a few of these from the perspective of a non-clown.

Minimum wage

You know, you don’t have to be an economics genius to understand that this man is a fool – the equivalent of a clown trying to take control of a nuclear power plant. Just look at his position on minimum wage. Every economist understands that raising the minimum wage causes businesses to lay off workers. Why? Because they have to pay for the higher minimum wage somehow. Either they lay off workers and scale back their business, or they charge consumers more. When you charge consumers more, they buy less of what you’re selling. So, usually it means laying off workers.

This Daily Signal article explains what happened when liberal cities raised their minimum wage rates.

Payroll tax

Raising the rate o the employer payroll tax means that employers will basically have to pay more for the same labor. They X labor out of their employees now, and paying Y wages. After Sanders, they will be getting X labor still, but paying a higher Y in wages. What will they do? They will simply let go of their least productive employees and scale back their business, maybe expanding abroad and sending jobs to a country where they are taxed less.

This article from the Fraser Institute explains what happens when companies have to pay more to employ workers.

Tariffs

Bernie Sanders thinks that consumers should pay more for consumer goods. That’s what happens when you slap tariffs on goods manufactured in other countries. Consumers and businesses end up paying more for the same product, leaving less money for other things that you need for your family.

Here’s a post that explains why free trade is best for consumers.

Single payer health care

Single payer health care is supported by economic illiterates in the Democrat and Republican parties – both Sanders and Trump support it. What single payer does is allow government workers to take a cut of every transaction between you and your doctor, effectively imposing a tax on medical treatment without adding any value. It would be as if every transaction between you and Amazon.com were to be funneled through the government to see if you were allowed to buy what you wanted, and for how much. Obviously, we would have to hire government workers to make decisions about your Amazon purchases, to make you wait in line behind others who wanted the same items, and to process payments to Amazon.

Just read this Boston Globe article about the costs of Vermont’s (failed) proposal to have single-payer health care.

Public Works

Henry Hazlitt’s book “Economics in One Lesson” explains the problem with taxing the private sector to build public works.

Henry Hazlitt’s Economics in One Lesson, chapter 4, entitled “Public Works Mean Taxes”.

Excerpt:

Therefore, for every public job created by the bridge project a private job has been destroyed somewhere else. We can see the men employed on the bridge. We can watch them at work. The employment argument of the government spenders becomes vivid, and probably for most people convincing. But there are other things that we do not see, because, alas, they have never been permitted to come into existence. They are the jobs destroyed by the $10 million taken from the taxpayers. All that has happened, at best, is that there has been a diversion of jobs because of the project. More bridge builders; fewer automobile workers, television technicians, clothing workers, farmers.

And consider Chapter 5 as well, entitled “Taxes Discourage Production”.

In our modern world there is never the same percentage of income tax levied on everybody. The great burden of income taxes is imposed on a minor percentage of the nation’s income; and these income taxes have to be supplemented by taxes of other kinds. These taxes inevitably affect the actions and incentives of those from whom they are taken. When a corporation loses a hundred cents of every dollar it loses, and is permitted to keep only fifty-two cents of every dollar it gains, and when it cannot adequately offset its years of losses against its years of gains, its policies are affected. It does not expand its operations, or it expands only those attended with a minimum of risk. People who recognize this situation are deterred from starting new enterprises. Thus old employers do not give more employment, or not as much more as they might have; and others decide not to become employers at all. Improved machinery and better-equipped factories come into existence much more slowly than they otherwise would. The result in the long run is that consumers are prevented from getting better and cheaper products to the extent that they otherwise would, and that real wages are held down, compared with what they might have been.

There is a similar effect when personal incomes are taxed 50, 60 or 70 percent. People begin to ask themselves why they should work six, eight or nine months of the entire year for the government, and only six, four or three months for themselves and their families. If they lose the whole dollar when they lose, but can keep only a fraction of it when they win, they decide that it is foolish to take risks with their capital. In addition, the capital available for risk-taking itself shrinks enormously. It is being taxed away before it can be accumulated. In brief, capital to provide new private jobs is first prevented from coming into existence, and the part that does come into existence is then discouraged from starting new enterprises. The government spenders create the very problem of unemployment that they profess to solve.

Why anyone would consider a man who has never held a private sector job for any length of time is beyond me. That article explains that Sanders has only ever collected unemployment or worked in government jobs. My cashier at Chick-Fil-A understands more about economics than this fool.

Left-wing Democrat groups pack Stephen Colbert / Jon Stewart rally

Politco has the list of some of the left-wing Democrat special interest groups who attended the pro-Obama rally staged by left-wing radicals Stephen Colbert and Jon Stewart.

Excerpt:

Abortion-rights supporters, marijuana fans, environmental activists, government watchdogs and the Democratic National Committee all will be cruising the Mall and spreading their messages in the hopes of winning hearts, minds and votes three days before Election Day.

— At least 100 MoveOn.org Political Action volunteers will serve 25,000 cups of hot chocolate that advertise a get-out-the-vote effort people can join by texting the organization.

— Public Citizen’s government watchdogs are giving out 5,000 signs featuring slogan-contest winners like “It’s a Democracy, Not an Auction,” chosen from 6,000 entries.

— Abortion rights supporters from NARAL will be trolling the Mall, metro stations and the bus parking lot at RFK Stadium, some in Lady Liberty costumes, rewarding people who sign up to volunteer with a sticker saying, “Vote Pro-Choice. Politicians Make Crappy Doctors” — also a product of a slogan contest.

— After the rally, the pro-pot activists at Students for Sensible Drug Policy are set to do eight hours of phone banking urging California voters to support Proposition 19, which would legalize marijuana in the state.

None of the groups quite know what kind of crowd to expect — MoveOn’s Ilyse Hogue called it a “huge mystery.” — but they figure it will probably be young, liberal and frustrated. Just the kind of folks whose untapped energy can be channeled into get-out-the-vote efforts.

Two clowns organizing a rally for the Clown-In-Chief. Yay! 10% unemployment! 3 trillion in budget deficits! Everyone laugh! It’s so funny!

The radically leftist New York Times reports that the Democratic National Committee will be heavily involved in the Colbert/Stewart rally.

Excerpt:

…the Democratic National Committee is doing everything it can to capitalize on the event.

Volunteers and staff members from the headquarters are greeting people as they get off of the buses or arrive in Washington on trains, armed with sign-up sheets for canvassing efforts in districts across the country.

And for those rally attendees who have not gotten enough of politics by the end of the rally, they can head over to the the committee’s headquarters a few blocks away, where there will be a phone bank. Committee officials said they expected to get at least 100 people there.

The rally had been a subject of concern for some Democrats, who said it would siphon the most active Democrats from around the country away from the get-out-the-vote efforts in their home states and districts.

But a spokeswoman for the Democratic committee’s Organizing for America said Saturday that the party is supportive of the Comedy Central hosts’ event.

“We think having people energized and enthusiastic in the final days before Election Day is great,” said the spokeswoman, Lynda Tran. “OFA is urging people to head from the rally to a phone bank or to pick up a canvass and go door to door to urge their friends, neighbors, and communities to head to the polls on Tuesday.”

Indeed. And the rally is supported by Bill Ayers and Bernardine Dohrn, Barack Obama’s old anti-American terrorist buddies, too.

Excerpt:

When comics Jon Stewart and Stephen Colbert announced their rallies on the national mall scheduled for this Saturday, they may not have expected—or wanted—an endorsement from Weather Underground terrorist Bill Ayers. But Ayers told the Ford Motor Company-sponsored Green Festival in Washington, D.C. last Saturday that the event will be a needed respite from the “Alice in Wonderland” world of military domination of the planet and wars waged by the U.S. “empire.”

The October 30 Stewart/Colbert rallies, dubbed “Restore Sanity” and “Keep Fear Alive,” are “worth attending,” Ayers said.

[…]Ayers and Dohrn had staged a fundraiser for Obama when he began his political career by running for the Illinois State Senate. Ayers and Obama served on a board and appeared at functions together. During the campaign, however, Obama tried to play down his relationship with the terror couple.

All of Obama’s buddies from Bill Ayers and Bernadine Dohrn to Jon Stewart and Stephen Colbert are very excited about the rally. I’m sure Reverend Jeremiah Wright would approve, as well.

Barack Obama calls tea party movement “tea-baggers” in interview

Unbelievable. Story here at Americans for Tax Reform. (H/T ECM)

Excerpt:

President Barack Obama, known for his lectures to others on civility, saw fit to use the obscene and derogatory term “tea-baggers” in a book interview with author Jonathan Alter.

Below is an excerpt from Alter’s new book The Promise: President Obama, Year One, to be released May 18:

Obama said that the unanimous House vote against the Recovery Act ‘set the tenor for the whole year’: ‘That helped to create the tea-baggers and empowered that whole wing of the Republican Party to where it now controls the agenda for the Republicans.’  For Obama this was the greatest surprise of 2009.

And the post also contains some selected statements by Obama on civility.

“We’ve got politicians calling each other all sorts of unflattering names.”

“Now, the second way to keep our democracy healthy is to maintain a basic level of civility in our public debate.”

“We can’t expect to solve our problems if all we do is tear each other down.  You can disagree with a certain policy without demonizing the person who espouses it.”

“So what do we do? As I found out after a year in the White House, changing this type of politics is not easy. And part of what civility requires is that we recall the simple lesson most of us learned from our parents: Treat others as you would like to be treated, with courtesy and respect.”

It’s like having Michael Moore as president. No one takes a hate-filled, narrow-minded ideologue seriously. But this man is the president of the United States. We have a teenage clown as our president.