NewGuy said:
I don't agree that his policies are unrealistic at all. What's so unrealistic about his plans? Also, he hasn't mentioned his tax plan besides the high level, "We'll increase tax in the top 1% and corporations", so saying that he'd increase tax for all classes is a false statement. |
For starters he ignores the deadweight loss that will be caused by his policies. Why would corporations (that are already fleeing the U.S) choose to stay here with his plans? If he combined closing loopholes with lower corporate tax rates then that would be an alright trade-off. Currently though the U.S has the highest corporate tax rates in the world. Does he honestly think the $100 billion estimate the U.S is losing from off-shore accounts would be in the hands of the U.S in the circumstance that these loophole's are closed? Sure there are many that are currently taking advantage of loopholes, but to claim that they will start paying the taxes is like claiming a pirate will start buying games if they could no longer pirate them. These corporations will just flee to the plethora of European and Asians states that are more friendly and which have lower corporate tax rates.
Bernie has mentioned he wants a payroll tax for single-payer health-care. Currently payroll taxes are some of the most regressive forms of taxation and are the most damaging to the poor, while subsidizing the costs of health-care for the upper classes. Sure medicaid/medicare taxes will be replaced with his new single-payer taxrate, but then for many people in many states that means larger payroll tax rates overall just to make it feasible (you are insuring hundreds of millions of more people than with medicaid/medicare.) This is one example of he promoting higher tax-rates for the poor without explicitly saying so, probably because that will be seen negatively.
The same can be said for a $15 federal minimum wage. In many regions and states $15/hour full time places you in the 30-40 percentile of this state/region. Why? Because costs of living and business are much lower. A $15 minimum wage would put a large number of people making less than that unemployed in these states. Fifteen dollars might make sense in San Fransisco if you believe increasing the average wage supercedes any loss of jobs in terms of economic welfare, but it doesn't make sense in Mississippi or West Virginia, where people make less but also need less to live off of. Minimum wages also harm small businesses more than larger ones, because of economies of scale and small businesses coping less with increasing variable costs.
All of these policies have negative effects on the 97% he is trying to represent.