Part of Bernie Sanders’ appeal is that he wants to “stick it” to the rich. He proposes funding “free” college through a tax on financial transactions (which has failed in Europe, by the way), which the average voter realizes won’t affect them.
The problem with Bernie is the sheer size of the amount of freebies he wants to give out. While the Wall Street Journal famously estimated last year that a Bernie presidency would increase government spending by $18 trillion over the next ten years, new estimates are placing the cost of his universal healthcare plan alone at $28 trillion.
The meme below perfectly illustrates why taxing the rich isn’t going to foot the bill.
So Bernie is going to have to tap into the rest of us to find his freebies.
Here’s what federal taxes look like today, versus what they would be like under a Bernie presidency.
And even then, it still wouldn’t be enough! To quote from the Foundation for Economic Education:Analysis by the Tax Foundation finds that his proposed tax hikes already total $13.6 trillion over the next ten years. However, “the plan would [only] end up collecting $9.8 trillion over the next decade when accounting for decreased economic output.”
Margaret Thatcher famously said that socialism only works until you run out of other people’s money. The problem with a Sanders presidency is that we’re already out of other people’s money.
[Note: This post was authored by The Analytical Economist]