How reassuring is it to Hillary, exactly, that she won what amounted to a straw poll totaling less than 11,000 votes among the various Nevada hotel employees unions? You could tell from her pained, artificial smile at the victory podium that there is something booby prize-ish about that narrow triumph. And what was with the metallic red outfit that had her looking like a previously-owned Christmas tree ornament? Maybe her handlers put her in Kevlar for the occasion.
She’ll need it as this fretful election campaign moves into the middle innings. That trademark unconvincing smile masks the embarrassing truth that the fix is in for Hillary, the bought and paid for repeat felon, inside the dark machine that is the Democratic Party hierarchy, hijacked by chairperson Debbie Wasserman-Schultz’s league of cronies. The so-called “super-delegates” have all been rounded up and branded with a big smoking “H” on their hindquarters, leaving poor Bernie in the alkali basin of dashed hopes.
Speaking of brain dead Bernie…with a growing number of Americans appearing willing to jump on the socialism-by-any-other-name bandwagon, JPMorgan CIO Michael Cembalest digs into the details of Bernie Sanders’ tax proposals. As the following chart sums up so extremely, his plan would certainly represent an unprecedented event in the history of US taxation.
There is no official Congressional Budget Office scoring of his plan at this stage, but the Tax Foundation assessed his proposed taxes on individuals and corporations and came up with a figure of $13.5 trillion of additional taxs over ten years. Large numbers are inherently large, so how big is that? Amortizing the amount over 10 years, these proposals are estimated to raise incremental taxes of around 7% of GDP per year.
The chart puts this number into context by looking at major tax legislation of the last 75 years. The revenue raised by each bill is shown on the Y axis, alongside prevailing Federal tax receipts (individual taxes, corporate taxes and excise taxes) before passage of each bill on the X axis. Even if Tax Foundation estimates are too high, Sanders’ proposals are in a league of their own. The only bill that comes close was passed in 1942, except there were two big differences:
1- the US was in the middle of WWII
2- at the time, total Federal taxes were much lower. Even tax increases in the 1.5%-2.0% of GDP range have not been seen since the Korean War, when tax receipts were also lower than they are today.
All the debates around prior post-war tax legislation seem rather small now, don’t they?
Democratic Socialism has a very, very high cost, and it would not just be borne by billionaires and millionaires. Bernie has admitted he will raise taxes on the middle class.
Perhaps this is why 4 prior Chairs of the Council of Economic Advisers for Presidents Obama and Clinton wrote an open letter to Sanders just this morning citing “extreme claims” by the Sanders campaign about the Senator’s economic plan, which “cannot be supported by the economic evidence” and which “runs against our party’s best traditions of evidence-based policy making and undermines our reputation as the party of responsible arithmetic.”
There is no longer a lesser of two evils on the democrat ticket.