We found that the plan would’ve been an billion tax increase over identical period. Instead, he raises lots of revenue by taxing the rich a lot more, and everyone else a bit more. Hundreds of his new tax revenue comes from new income and payroll taxes that hit just about everyone with slightly higher taxes with intention to fund his Medicare for All plan. We found that the plan my be an 275000 in wage income will increase by 50 percent to 544 percent. This taxpayer’s employee side payroll tax should increase from 35 percent to 9 percent. This same taxpayer’s income tax rate would now be 392 percent. The new rate is composed of the employee side Medicare payroll tax of 45 percent, the Medicare Surtax of 9 percent, the new 2 percent family leave payroll tax, and an additional 2 percent as long as Sanders would subject income over 50000 in wage income faces a combined marginal tax rate 374 percent. Just think for a moment. This same taxpayer will pay quite similar 25 percent income tax rate plus the new 2 percent income tax to fund the healthcare plan. Keep reading! This is comprised of a 25 percent income tax rate, a 65 employeeside payroll tax, and a 65 percent ’employerside’ payroll tax. Under Sanders’s plan, the marginal tax rate would increase to 431 percent. On top of this, his employeeside payroll tax will increase from 65 to 9 percent since the new family leave payroll tax of 2 percent.
Taking into account the new payroll and income taxes in general income levels, marginal rates on labor income would increase across the board. These marginal rates do not include the impact of the phasein and phase out of different provisions like the Pease limitation on itemized deductions, the phaseout of the personal exemption, the EITC, or the Child Tax Credit. Marginal tax rates under Sanders’s plan should range from 192 percent on income between 10350 for a single and as high as 675 percent for income over began imposing excise taxes on gasoline and today it remains a key revenue. From the Tax Foundation Blog. From the Tax Foundation Blog. >