Bernie Sanders on Tax Reform Democratic primary challenger; Independent VT Senator; previously Representative (VT-At-Large)

Sub-sections under Tax Reform:
• Progressive Taxation
• Voting Record
• Other issues under Tax Reform

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

Supports progressive taxation; closing loopholes for wealthy

Replace carried-interest loophole with progressive taxation

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.

Raise funds in a progressive way, for ObamaCare & everything

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.

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

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.

Tax code is rigged to favor top 2% of billionaires

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.

We need a progressive tax system based on ability to pay

Filibustered against Obama-Republican tax deal

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.

Cap the home mortgage interest deduction at $300,000

• Repeal housing and wage exemptions for US citizens working abroad: increased income--$7.2 billion.
• Tax capital gains at regular rate: increased income--$49 billion.
• Repeal exemption on income earned by US firms in Puerto Rico and other US possessions: increased income--$19.7 billion.
• Cap the home mortgage interest deduction at $300,000: increased income--$34.8 billion.
• End US firms' delay of tax on income of foreign subsidiaries: increased income--$5.7 billion.
• Subject major foreign stockholders in US companies to capital gains tax: increased income--$7 billion.

Property taxes are highly regressive & hurt poor & seniors

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

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.

Tax increases may affect more than top 1%

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,

Wealth tax of 8% on fortunes over $10 billion

Top rate of 77% for estates over $1 billion

1974: 100% tax over $1 million

Close loopholes that let wealthy avoid 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.

Raise income tax & fix estate tax: hardly Marxist ideas

0.1% tax on Wall Street speculation

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.

End loophole that allows zero taxes via Cayman Islands

Wealthiest will pay more but not as much as under Eisenhower

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.

Increase tax on wealthy; close loopholes for corporations

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.

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

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.

Increase estate tax rates on inheritances over $3.5M

• Lowers the estate tax exemption level from $5.4 million to $3.5 million for individuals and from about $11 million to $7 million for couples.
• Increases the marginal tax rate to 45% on estates between $3.5 million to $10 million, 50% on estates between $10 million and $50 million, and 55% on estates over $50 million.
• Creates a new billionaire surtax of 10% that would only impact 530 billionaires who are worth a combined $2.6 trillion.
• Ends loopholes allowing billionaire families to set up dynasty trusts to avoid taxes.
• Protects family farms and conservation easements.

Double the capital gains tax for the wealthiest 2%

Real tax reform based on ability to pay

Capital gains & dividend tax cuts are giveaways to the rich

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.

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

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.

Voted YES on increasing tax rate for people earning over $1 million.

SUPPORTER'S ARGUMENT FOR VOTING YES:Sen. SANDERS: The wealthiest people in the country have not had it so good since the 1920s. Their incomes are soaring, while at the same time the middle class is shrinking, and we have by far the highest rate of childhood poverty of any major country. The time is now to begin changing our national priorities and moving this country in a different direction.

This amendment restores the top income tax bracket for households earning more than $1 million a year, it raises $32.5 billion over 3 years, and invests that in our kids, including $10 billion for special education.

OPPONENT'S ARGUMENT FOR VOTING NO:Sen. KYL: The problem is we are spending the same dollar 3 or 4 times, it appears. The Sanders amendment is paid for by raising taxes another $32.5 billion, ostensibly from the rich; that is to say, by raising taxes on people who make over $1 million a year. Here is the problem with that. The budget on the floor already assumes the expiration of the current tax rates; that is to say, the rates on the highest level go from 35% to 39.6%, and that money is spent. If you took all the top-rate income, you would come up with $25 billion a year, not even enough to meet what is here, and that money has already been spent. The reality is somewhere or other, somehow, more taxes would have to be raised. I don't think the American people want to do that, particularly in the current environment.

LEGISLATIVE OUTCOME:Amendment rejected, 43-55

Voted NO on allowing AMT reduction without budget offset.

SUPPORTER'S ARGUMENT FOR VOTING YES:Sen. GRASSLEY: The Senate voted to make sure that middle-class America didn't pay the AMT, and we did it without an offset, by a vote of [about 95%]. So here we are again with an opportunity to say to middle-class America that we are not going to tax the people who were not supposed to be hit by the AMT. This amendment gives us an opportunity to get over that hurdle that is in this budget resolution that, under pay-go, you would have to have an offset for the AMT. Unless my amendment is adopted, the 25 million families who will be hit by the AMT increase will get a tax increase of over $2,000 apiece. They deserve a guarantee of relief.OPPONENT'S ARGUMENT FOR VOTING NO: Sen. CONRAD: If you want to blow a hole in the budget as big as all outdoors, here is your opportunity--a trillion dollars not paid for, a trillion dollars that we are going to go out and borrow from the Chinese and Japanese. That makes absolutely no sense. I urge my colleagues to vote no.LEGISLATIVE OUTCOME:Amendment rejected, 47-51

Voted NO on raising the Death Tax exemption to $5M from $1M.

SUPPORTER'S ARGUMENT FOR VOTING YES:Sen. KYL: This amendment is a reprise of what we did last year in offering to reform the estate tax, sometimes referred to as the death tax. Now, in the budget itself, there is a provision to allow the death tax to be changed from the current law to a top rate of 45% and an exempted amount of $3.5 million, and there are some other features. My amendment would reduce that top rate to no higher than 35% so that if you had more than one rate, at least the top rate could not exceed 35%, and both of the two spouses would have a $5 million exempted amount before the estate tax would kick in. Now, the reason for my amendment is: current law [is] getting up to a high rate of 55% and an exempted amount of either $2 million or $1 million, probably $1 million--a continued unfair burden on primarily America's small businesses and farms.

OPPONENT'S ARGUMENT FOR VOTING NO:Sen. CONRAD: This amendment would virtually eliminate the estate tax. Let me say why. Let me first say there is no death tax in the country. Of course, if you poll people and you ask them: Do you want to eliminate the death tax? they will say sure. But you are not going to pay any tax when you die unless you have $2 million. There is no death tax in America. There is a tax on estates. At today's level of $2 million, that affects only 0.5% of estates. When the exemption reaches $3.5 million in 2009, 0.2% of estates will be taxed. If the amendment is agreed to, we would be borrowing money in the name of 99.8% of the American people, borrowing primarily from China & Japan, to give it to the Warren Buffets, the Paris Hiltons, & others of enormous wealth in this country.

LEGISLATIVE OUTCOME:Amendment rejected, 50-50

Voted NO on repealing the Alternative Minimum Tax.

Proponents recommend voting YES because:

This amendment repeals the AMT. Except for the telephone tax, the alternative minimum tax is the phoniest tax we have ever passed. The AMT, in 1969, was meant to hit 155 taxpayers who used legal means to avoid taxation, under the theory that everybody ought to pay some income tax.

This very year, more than 2,000 people who are very wealthy are not paying any income tax or alternative minimum income tax. So it is not even working and hitting the people it is supposed to hit. Right now, this year, 2007, the year we are in, there are 23 million families that are going to be hit by this tax. It is a phony revenue machine, over 5 years, $467 billion dollars. We are going to have to have a point of order this year to keep these 23 million taxpayers from paying this tax. We might as well do away with it right now, once and for all, and be honest about it.

Opponents recommend voting NO because:

The reality of the budget resolution is this may not have anything to do with eliminating the alternative minimum tax. The one thing it will do is reduce the revenue of the Government over the next 5 years by $533 billion, plunging us right back into deficit. Look, we can deal with the AMT. We have dealt with it in the underlying budget resolution for the next 2 years. There will be no increase in the number of people affected by the AMT for the next 2 years under the budget resolution, and that is paid for. Unfortunately, this amendment is not paid for. It would plunge us back into deficit. I urge my colleagues to vote no.

Voted NO on raising estate tax exemption to $5 million.

Proponents recommend voting YES because:

It is disappointing to many family businesses and farm owners to set the death tax rate at what I believe is a confiscatory 45% and set the exemption at only $3.5 million, which most of us believe is too low. This leaves more than 22,000 families subject to the estate tax each year.

Opponents recommend voting NO because:

You can extend all the tax breaks that have been described in this amendment if you pay for them. The problem with the amendment is that over $70 billion is not paid for. It goes on the deficit, which will drive the budget right out of balance. We will be going right back into the deficit ditch. Let us resist this amendment. People could support it if it was paid for, but it is not. However well intended the amendment is, it spends $72.5 billion with no offset. This amendment blows the budget. This amendment takes us from a balance in 2012 right back into deficit. My colleagues can extend those tax cuts if they pay for them, if they offset them. This amendment does not pay for them; it does not offset them; it takes us back into deficit. It ought to be defeated.

Voted NO on retaining reduced taxes on capital gains & dividends.

• Decreasing the number of people that will be required to pay the Alternative Minimum Tax (AMT)
• Allowing for deductions of state and local general sales taxes through 2007 instead of 2006
• Lengthening tax credits for research expenses
• Increasing the age limit for eligibility for food stamp recipients from 25 to 35 years
• Continuing reduced tax rates of 15% and 5% on capital gains and dividends through 2010
• Extending through 2007 the expense allowances for environmental remediation costs (the cost of cleanup of sites where petroleum products have been released or disposed)

Voted YES on providing tax relief and simplification.

• Extension of Family Tax Provisions
• Repeals the scheduled reduction (15 to 10 percent) for taxable years beginning before January 1, 2005, of the refundability of the child tax credit.
• Extends through 2005 the increased exemption from the alternative minimum tax for individual taxpayers.
• Extends through 2005 the following expiring tax provisions:
  1. the tax credit for increasing research activities;
  2. the work opportunity tax credit;
  3. the welfare-to-work tax credit;
  4. the authority for issuance of qualified zone academy bonds;
  5. the charitable deduction for donations by corporations of computer technology and equipment used for educational purposes;
  6. the tax deduction for certain expenses of elementary and secondary school teachers;
  7. the expensing of environmental remediation costs;
  8. the designation of a District of Columbia enterprise zone

Voted NO on making permanent an increase in the child tax credit.

Voted YES on permanently eliminating the marriage penalty.

Voted NO on making the Bush tax cuts permanent.

Voted NO on $99 B economic stimulus: capital gains & income tax cuts.

The bill would allow more individuals to receive immediate $300 refunds, and lower the capital gains tax rate from 20% to 18%.

Voted NO on Tax cut package of $958 B over 10 years.

Voted NO on eliminating the Estate Tax ("death tax").

Voted NO on eliminating the "marriage penalty".

Voted NO on $46 billion in tax cuts for small business.

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

The Problem

The Solution

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

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.

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

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

• 0% - 20%: opposes progressive taxation (approx. 235 members)
• 21% - 79%: mixed record on progressive taxation (approx. 39 members)
• 80%-100%: favors progressive taxation (approx. 190 members)

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:

• Fair taxes for middle and low-income families
• Requiring the wealthy to pay their fair share
• Closing corporate tax loopholes
• Adequately funding important government services
• Reducing the federal debt
• Taxation that minimizes distortion of economic markets

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

Paying a Fair Share Act of 2012:
• Amends the Internal Revenue Code to require an individual taxpayer whose adjusted gross income exceeds $1 million to pay a minimum tax rate of 30% of the excess of the taxpayer's adjusted gross income over the taxpayer's modified charitable contribution deduction for the taxable year (tentative fair share tax).
• Establishes the amount of such tax as the excess of the tentative fair share tax over the excess of the sum of the taxpayer's regular tax liability, the alternative minimum tax (AMT) amount, and the payroll tax for the taxable year;
• Provides for a phase-in of such tax.
• Requires an inflation adjustment to the $1 million income threshold for taxable years beginning after 2013.
• Expresses the sense of the Senate that Congress should enact tax reform that repeals unfair and unnecessary tax loopholes and expenditures, simplifies the tax system, and makes sure that the wealthiest taxpayers pay a fair share of taxes. Source: HR3903/S2230 12-S2230 on Mar 22, 2012

  CC:Reverse federal income tax cuts.

  Sanders opposes the CC survey question on keeping tax cuts

  The Christian Coalition Voter Guide inferred whether candidates agree or disagree with the statement, 'Make federal income tax cuts permanent' Christian Coalition's self-description: "Christian Voter Guide is a clearing-house for traditional, pro-family voter guides. We do not create voter guides, nor do we interview or endorse candidates."

  Source: Christian Coalition Surve 18CC-11a on Jul 1, 2018

  CC:Keep the inhertiance tax.

  Sanders opposes the CC survey question on eliminating Death Tax

  The Christian Coalition Voter Guide inferred whether candidates agree or disagree with the statement, 'Permanent Elimination of the "Death Tax"' Christian Coalition's self-description: "Christian Voter Guide is a clearing-house for traditional, pro-family voter guides. We do not create voter guides, nor do we interview or endorse candidates."

  Source: Christian Coalition Surve 18CC-11b on Jul 1, 2018

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