OnTheIssuesLogo

Bernie Sanders on Tax Reform

Democratic primary challenger; Independent VT Senator; previously Representative (VT-At-Large)

 


Medicare-for-All raises taxes on middle class, but net gain

Health care in my view is a human right. And we have got to pass a Medicare for all, single-payer system. Under that system the vast majority of the people in this country will be paying significantly less for health care than they are right now. People who have Medicare for all will have no premiums, no deductibles, no copayments, no out-of-pocket expenses. Yes, they will pay more in taxes, but less in health care for what they get.
Source: June Democratic Primary debate (second night in Miami) , Jun 27, 2019

Supports progressive taxation; closing loopholes for wealthy

You're looking at somebody who not only voted against Trump's disastrous tax plan -- 83 percent of the benefits going to the top 1 percent -- but I have and will continue in this campaign to fight for progressive taxation. If you are doing very, very well in our economy, you should be paying your fair share of taxes. We will raise those taxes for the upper income people. We will do away with the tax loopholes and the tax breaks that large private corporations currently receive.
Source: CNN Town Hall 2020: 5 candidates back-to-back , Apr 22, 2019

Replace carried-interest loophole with progressive taxation

If we taxed the wealthy in a progressive manner, we could begin to address the most urgent needs for factoring our country. But we don't. [According to Citizens for Tax Justice, the richest] 1 percent of Americans, [who] took in an astounding 21.6 percent of all income in the United States last year, paid just 23.6 percent of all federal, state, and local taxes. That is not the kind of tax system we need in America.

It's not just the official tax rates that benefit the rich, it's also the loopholes. There is a carried-interest loophole, a tax-break that allows Wall Street hedge fund managers to treat most of their earnings as long-term capital gains instead of payments for services rendered. Although it makes no rational sense, this loophole cuts the tax rate in half for a small group of incredibly wealthy people--costing the U.S. Treasury as much as $180 billion over ten years.

Source: Guide to Political Revolution, by Bernie Sanders, p. 32-3 , Aug 29, 2017

Raise funds in a progressive way, for ObamaCare & everything

Q: Throughout your campaign, you said that taxes should go up on the rich, not the middle class. And yet, millions of Americans who chose not to get health care are forced to pay a tax penalty, up to $2,000 per year for failing to purchase coverage under ObamaCare. Is it fair to put this tax burden on families?

SANDERS: No. It's not. But on the other hand, is it fair to not raise the revenue that we need to provide the kinds of benefits that we are providing? That is a way to do it. I don't think it's a particularly good way. I disagree with Ted, who wants to give, according to the "Wall Street Journal" and many other publications, incredible tax breaks to millionaires and billionaires. In the wealthiest country in the world, we should raise funds in a progressive way, where the very rich are now doing phenomenally well--yes, I do believe they should be asked to pay more in taxes and I think we should use that money and other mechanisms to provide health care to all people.

Source: CNN 2017 Town Hall debates: Ted Cruz vs. Bernie Sanders , Feb 7, 2017

1980s: progressive property tax, plus Meals & Rooms tax

We became the first municipality in Vermont to develop progressive alternatives to the property tax. Every day, people flocked to the city in order to work, play and enjoy our active nightlife; it was right that they contribute to the city services they enjoyed. We established the first municipal Meals and Rooms tax in the state. After a court battle, the utilities were forced to pay for the damage done whey they tore up our streets for utility work.

We addressed the inequities in the city's relationship to our large, tax-exempt institutions. We managed to get a substantial increase in payments in lieu of taxes from the University of Vermont and the Fletcher Allen Hospital for police & fire services. The hospital also began to play a more active role in the health care needs of people in our lower-income communities. We also developed a plan that brought in more revenue from our municipally owned airport in South Burlington.

Source: Our Revolution, by Bernie Sanders, p. 35-6 , Nov 15, 2016

Tax code is rigged to favor top 2% of billionaires

For the past forty years, the billionaire class has rigged the tax code to redistribute wealth to the richest and most powerful people. At a time of massive wealth & income inequality, \we need progressive income tax reform based on the ability to pay.

On December 10, 2010, I spoke on the floor of the Senate for eight and a half hours, to express outrage at the proposed two-year extension of the Bush tax breaks for the top 2 percent. I thought it was profoundly unfair, economically unwise, and politically wrong to provide hundreds of billions in additional tax breaks to the wealthiest people while the overwhelming majority were still suffering through the Great Recession.

The Bush tax breaks were in place for more than a decade, and the private sector lost nearly half a million jobs and the deficit exploded. On the other hand, in 1993, when President Bill Clinton increased taxes on the top 2 percent, more than 22 million jobs were created, and we had a $236 billion budget surplus.

Source: Our Revolution, by Bernie Sanders, p. 263 , Nov 15, 2016

Tax increases may affect more than top 1%

Q: How do you pay for your proposed programs like tuition-free public college?

SANDERS: We have to tax Wall Street speculation. When you see the rich's effective tax rates is lower than the effective tax rates of truck drivers, then the wealthy have got to pay more. We'll end the loophole that allows large corporations to stash their money in the Cayman Islands and avoid paying federal income taxes. We'll raise the estate tax so that billionaires end up paying more in taxes.

Q: Previously, you said that 90% marginal rate is not too high. So how high are you willing to go on that top marginal rate?

SANDERS: We'll come up with that rate but it will be a lot higher than it is right now.

Q: But to pay for all of your programs,

Source: ABC This Week 2015 interview by Martha Raddatz , Oct 18, 2015

We need a progressive tax system based on ability to pay

At a time of massive wealth and income inequality, we need a progressive tax system in this country which is based on ability to pay. It is not acceptable that major profitable corporations have paid nothing in federal income taxes, and that corporate CEOs in this country often enjoy an effective tax rate which is lower than their secretaries. It is absurd that we lose over $100 billion a year in revenue because corporations and the wealthy stash their cash in offshore tax havens around the world.
Source: 2016 presidential campaign website, BernieSanders.com , Mar 21, 2015

Filibustered against Obama-Republican tax deal

President Obama and the Republican leadership have reached an agreement on a very significant tax bill. In my view, the agreement they reached is a bad deal for the American people. I am here today to take a strong stand against this bill. You can call what I am doing a filibuster; I am simply here today to enumerate some of the reasons I am opposed to this agreement.

This Nation has a recordbreaking $13.8 trillion national debt. We have been told not to worry too much because the extension of these tax breaks for the wealthy will only last 2 years. Clearly, we have a number of Republicans who want to make that extension permanent. A 10-year extension would add $700 billion to our national debt.

This agreement also calls for a continuation of the Bush era 15% tax rate on capital gains and dividends.

On top of all that, this agreement includes a horrendous proposal regarding the estate tax. Eliminating this estate tax completely would raise the national debt by $1 trillion over a 10-year period.

Source: The Speech: A Historic Filibuster, by Bernie Sanders , Dec 10, 2010

Cap the home mortgage interest deduction at $300,000

Could WE, the progressives in Congress, balance the budget in seven years in a way that was fair and would not hurt the kids, the elderly, the sick, or the poor? Damn right we could! I showed how we could save more than $800 billion over 7 years by dealing with SOME of the giveaways in corporate welfare and tax breaks for the rich. This illustrative list gives some details.
Source: Outsider in the House, by Bernie Sanders, p. 207-8 , Jun 17, 1997

Property taxes are highly regressive & hurt poor & seniors

[In the 1981 mayoral race] one of my most widely noticed positions was strong opposition to a huge increase in the property tax proposed by Mayor Paquette. He calculated that with only token resistance (mine), he could slip the tax hike by without suffering any negative political effect. I kept stressing my opposition not only to this particular tax increase but also to the very concept of the property tax. Property taxes are highly regressive and hurt, in particular, low- and moderate-income citizens, especially senior citizens. During the campaign, I proposed that Burlington break its dependence on the property tax and develop a fair and progressive tax system to fund municipal services and local education.
Source: Outsider in the House, by Bernie Sanders, p. 30 , Jun 17, 1997

1% room-and-meal tax instead of property tax

The property tax, the major source of funding for education and municipal services in VT, is regressive because it is not based on ability to pay. Many senior citizens and working people were (and are) paying far more in property taxes than they can afford on their limited incomes. For 7 straight years I did not raise the general property tax for homeowners in Burlington. At the same time, I fought hard for more progressive forms of taxation.

We did become the first municipality in Vermont to develop alternatives to the property tax. After a major struggle against many of the restaurant owners, we implemented a 1% room-and-meal tax. We also passed a classification system of taxation which raised to 120% the tax rate on commercial and industrial property.

Source: Outsider in the House, by Bernie Sanders, p. 62 , Jun 17, 1997

Bernie Sanders on Progressive Taxation

Wealth tax of 8% on fortunes over $10 billion

His wealth tax vision one-ups the initiative Warren announced this year. Under her revised plan, wealth over $1 billion would face a 6 percent annual tax. Under the Sanders plan, Americans with fortunes over $10 billion would face an 8 percent annual wealth tax levy. America's 400 richest people pay just 23% of their income in local, state, and federal taxes. The original Warren wealth tax would nearly double that rate, to 45.9%. The Sanders proposal would more than triple it, to 74.8%.
Source: The Nation magazine on 2019 Democratic primary , Nov 19, 2019

Top rate of 77% for estates over $1 billion

Sanders has long said he supports raising taxes on the wealthiest Americans. He recently proposed hiking estate taxes for millionaires and billionaires, including a top rate of 77% for estates over $1 billion.
Source: Axios.com "What you need to know about 2020" , Apr 12, 2019

1974: 100% tax over $1 million

During his 1974 Senate run, Sanders said one plan to expand government included making it illegal to gain more wealth than person could spend in a lifetime and have a 100% tax on incomes above this level. (Sanders defined this as $1 million dollars annually). "Nobody should earn more than a million dollars," Sanders said.
Source: CNN KFile, "Nationalization," on 2020 Democratic primary , Mar 14, 2019

Close loopholes that let wealthy avoid taxes

At a time when the people on top have so much, while the middle class shrinks and we have so many people living in poverty, if your question is am I going to demand that the wealthy and large corporations start paying their fair share of taxes? Damn right, I will. People say where are you going to get the money? Amazon, owned by the wealthiest guy in the world, made $5 billion last year in profits. Anyone here know how much they paid in taxes?

AUDIENCE: Zero!

BERNIE: That's right. That's where we're going to begin getting the money. We are going to do away with those outrageous loopholes that allow large corporations, owned by some of the wealthiest people in this country, to pay nothing in taxes. We're going to end their ability to put their money in the Cayman Islands under the tax havens.

Source: CNN Town Hall on 2020 Democratic presidential primary , Feb 25, 2019

Raise income tax & fix estate tax: hardly Marxist ideas

Sanders' views correspond to only a small portion of the socialist program advocated by Karl Marx in his Communist Manifesto and are a far cry from Marx's vision of a stateless communist society he posits would follow. Sanders would raise income taxes and lower the exemption on estate taxes from $5.4M to $3.5M, but he calls for something far less radical than the "abolition of all rights of inheritance".
Source: The Economist "Socialist?" on 2020 Democratic primary , Feb 1, 2019

0.1% tax on Wall Street speculation

If we are serious about reforming our financial system, we have got to establish a tax on Wall Street speculators. We have got to discourage reckless gambling on Wall Street and encourage productive investments in a job creating economy.

By imposing a small financial transaction tax of just 0.5 percent on stock trades (that' just 50 cents for every $100 worth of stock), a 0.1 percent fee on bonds, and a 0.005 percent fee on derivatives, we would help tap the brakes on high-frequency speculative trading. And we would raise up to$300 billion a year, which I have proposed using to make public colleges an universities tuition-free. During the financial crisis, the middle class bailed out Wall Street. Now it's Wall Street's turn to help the middle class.

Source: Our Revolution, by Bernie Sanders, p. 312 , Nov 15, 2016

End loophole that allows zero taxes via Cayman Islands

There is a loophole such that these multi-billion dollar profitable corporations are putting billions of dollars into the Cayman Islands, Bermuda, and other tax havens. In a given year, do you know how much they're paying in taxes to the US government in a given year? Zero. What I have said with regard to Boeing and GE and other multinationals that pay zero taxes, you know what we're going to do? We're going to end that loophole. They are going to pay their fair share of taxes.
Source: MSNBC Democratic primary debate in New Hampshire , Feb 4, 2016

Wealthiest will pay more but not as much as under Eisenhower

Q: Let's get specific. How high would you go on tax rates? You have said before you would go above 50%.

SANDERS: We haven't come up with an exact number yet, but it will not be as high as the number under Dwight D. Eisenhower, which was 90%. I'm not that much of a socialist compared to Eisenhower. But we are going to end the absurdity, as Warren Buffet often reminds us, that billionaires pay an effective tax rate lower than nurses or truck drivers. That makes no sense at all. There has to be real tax reform, and the wealthiest and large corporations will pay when I'm president.

Gov. O'MALLEY: May I point out that under Ronald Reagan's first term, the highest marginal rate was 70%. And in talking to a lot of our neighbors who are in that super wealthy, millionaire and billionaire category, a great numbers of them love their country enough to do more again in order to create more opportunity for America's middle class.

Source: 2015 CBS Democratic primary debate in Iowa , Nov 14, 2015

Increase tax on wealthy; close loopholes for corporations

If you look at my agenda, the wealthy people are not particularly supportive of it, because we are going to ask the wealthiest people in this country to pay substantially more in taxes, because we have a situation where they're earning almost all of the new income.

We are going to ask large corporations, profitable corporations that, in some cases, pay zero in federal income taxes to start paying their fair share of taxes.

Source: CBS Face the Nation 2015 interview by Bob Schieffer , Sep 27, 2015

Raise top marginal income tax rate from 39% to over 50%

Q: Who are the "richest Americans" on whom you'd raise taxes?

A: These are the Americans who qualify for the top income tax bracket. Right now, the top tax bracket begins with money made beyond $400,000, and any additional money is taxed at 39.6%.

Q: I heard Bernie wants to raise the top tax bracket to 90%. That seems too high.

A: Bernie has never said he wants to do that. He has recently said that he is "working right now on a comprehensive tax package, which I suspect will, for the top marginal rates, go over 50%."

Q: But has it ever been that high?

A: Actually, yes. The top tax rate was over 90% from 1944 until 1964. The 39.6% tax is low compared to historical tax rates.

Q: How are capital gains and 'dividends related to this?

A: Capital gains and dividends are sources of income almost exclusively made by the wealthiest Americans. While historically these were taxed at similar rates to normal income, since the 1970's the tax rates have been lowered dramatically.

Source: 2016 grassroots campaign website FeelTheBern.org, "Issues" , Sep 5, 2015

Increase estate tax rates on inheritances over $3.5M

Sanders introduced legislation to increase estate tax rates on the top 3/10 of 1% of Americans. "The fairest way to reduce wealth inequality is to enact a progressive estate tax on multi-millionaires," Sanders said. Only the very wealthiest millionaires would be effected by the Sanders plan; 99.75% of Americans would not pay a penny more in estate taxes. Sanders' bill does the following:
Source: The Essential Bernie Sanders, by Jonathan Tasini, p. 41-3 , Jun 25, 2015

Double the capital gains tax for the wealthiest 2%

The current ranking minority member on the Senate Budget Committee, Sanders would nearly double taxes on capital gains and dividends for the wealthiest two percent of Americans. In addition, this year Sanders asked President Obama to use executive action to close six tax deductions benefitting corporations and hedge funds. The Vermont senator would use some of the revenue gained from higher taxes on the rich to lower taxes for middle and lower class Americans.
Source: PBS News Hour "2016 Candidate Stands" series , Apr 30, 2015

Real tax reform based on ability to pay

At a time of massive wealth and income inequality, we need a progressive tax system in this country which is based on ability to pay. It is not acceptable that major corporations have paid nothing in federal income taxes, and that corporate CEOs in this country often enjoy an effective tax rate which is lower than their secretaries. We lose over $100 billion a year in revenue because the wealthy stash their cash in offshore tax havens around the world. The time is long overdue for real tax reform.
Source: 12 Steps Forward, by Sen. Bernie Sanders , Jan 15, 2015

Capital gains & dividend tax cuts are giveaways to the rich

Sanders says a new plan in Congress is a giveaway to wealthy people. A key part of the legislation being debated in Washington this week extends a rate reduction on capital gains and dividend income for another two years. Sanders opposed the measure because he says 43 % of the tax benefits will go to individuals who earn at least a million dollars a year. Sanders says, “I think that that’s absurd. I mean this is again another example of President Bush and the Republican leadership leaning over backwards to help people who really don’t need any help. These are the wealthiest people in this country who are doing extraordinarily well and the help for the middle class is minimum.“

Sanders says he also opposed the bill because he feels it will increase the national debt. Sanders says, ”According to the non partisan CBO, the major reason that President Bush has presided over the largest deficits in our nation’s history is due to his tax policy and this will only make a very bad situation worse.

Source: Bob Kinzel series of interviews on Vermont Public Radio , Jun 11, 2006

Bernie Sanders on Voting Record

Lower cutoff for estate tax from $5.4M to $3.5M

Q: What does Bernie think is wrong with the estate tax?

A: While for many years this tax unfairly affected middle-class farms, it has been significantly changed to only affect large estates, worth over several millions of dollars. The rate has been lowered and the cap raised to such an extent that it has amounted to a huge tax break for the super-rich.

Q: So what is Bernie's answer to reforming the estate tax?

A: Bernie has proposed lowering the bar on estate taxes so that individuals who own estates worth more than $3.5 million and couples who own estates worth more than $7 million will be taxed (at the moment the bar is set at $5.4 million and $11 million). This bill also increases the amount of tax on these estates, and closes loopholes used to avoid paying these taxes.

Q: Shouldn't people be able to pass on money to their children?

A: They should--but even with Bernie's proposed new estate tax, 99.75% of Americans would not pay any more in estate taxes than they do today.

Source: 2016 grassroots campaign website FeelTheBern.org, "Issues" , Sep 5, 2015

American People's Dividend: Give $300 to every person.

Sanders adopted the Progressive Caucus Position Paper:

The Problem

President Bush argues that upper income people pay a larger share of the taxes, therefore they should get a larger tax cut. We disagree. These people have significantly benefited from the economic boom of the 1990s, while those in the bottom range of incomes have received little benefit. It’s these folks that we must help. President Bush’s plan is “Reaganomics” revisited and it’s fiscally irresponsible. Despite spending $1.6 trillion or more, the President’s tax plan gives little to nothing for those with little income. In fact, anyone below 140% of the poverty line, will get a zero tax cut.

The Solution

The Progressive Caucus believes that tax relief must flow to those who need it the most, the working class and people with limited incomes. We have endorsed an idea called the American People’s Dividend. We’ll give a dividend to every American, because every American is an equal shareholder in America. We estimate the total cost to be about $900 billion over 10 years. The plan will give to every person about a $300 refundable tax credit. A married couple with 3 children will receive $1500, $300 for each member of the family. This plan is simple, easy to administer, and progressive. The plan could provide an economic stimulus since it would put money in people’s pockets immediately. Unlike the Bush proposal, which reserves 40% of the tax benefits for the wealthiest 1% of the population, our proposal gives the wealthiest 1% exactly 1% of the tax relief. This makes the bulk of tax relief available for the bulk of the population. The American People’s Dividend is payable every year the federal budget is in surplus.
Comparison of Progressive Tax Plan & Bush’s Plan
The WealthyThe Low Income
Progressive Caucus American Peoples Dividend$300$300
President Bush’s Tax Cuts$$46,000$0
Source: Progressive Caucus Press Release, "Tax Relief" 01-CPC2 on Feb 8, 2001

Rated 28% by NTU, indicating a "Big Spender" on tax votes.

Sanders scores 28% by NTU on tax-lowering policies

Every year National Taxpayers Union (NTU) rates U.S. Representatives and Senators on their actual votes—every vote that significantly affects taxes, spending, debt, and regulatory burdens on consumers and taxpayers. NTU assigned weights to the votes, reflecting the importance of each vote’s effect. NTU has no partisan axe to grind. All Members of Congress are treated the same regardless of political affiliation. Our only constituency is the overburdened American taxpayer. Grades are given impartially, based on the Taxpayer Score. The Taxpayer Score measures the strength of support for reducing spending and regulation and opposing higher taxes. In general, a higher score is better because it means a Member of Congress voted to lessen or limit the burden on taxpayers. The Taxpayer Score can range between zero and 100. We do not expect anyone to score a 100, nor has any legislator ever scored a perfect 100 in the multi-year history of the comprehensive NTU scoring system. A high score does not mean that the Member of Congress was opposed to all spending or all programs. High-scoring Members have indicated that they would vote for many programs if the amount of spending were lower. A Member who wants to increase spending on some programs can achieve a high score if he or she votes for offsetting cuts in other programs. A zero score would indicate that the Member of Congress approved every spending proposal and opposed every pro-taxpayer reform.

Source: NTU website 03n-NTU on Dec 31, 2003

Rated 100% by the CTJ, indicating support of progressive taxation.

Sanders scores 100% by the CTJ on taxationissues

OnTheIssues.org interprets the 2005-2006 CTJ scores as follows:

About CTJ (from their website, www.ctj.org):

Citizens for Tax Justice, founded in 1979, is not-for-profit public interest research and advocacy organization focusing on federal, state and local tax policies and their impact upon our nation. CTJ`s mission is to give ordinary people a greater voice in the development of tax laws. Against the armies of special interest lobbyists for corporations and the wealthy, CTJ fights for:

Source: CTJ website 06n-CTJ on Dec 31, 2006

Minimum tax rate of 30% for those earning over $1 million.

Sanders co-sponsored Paying a Fair Share Act