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Originally Posted by MrAdvantage
Imjosh, what's my best rebuttal when someone says Bernie is going to tax us 60 % or ruin small businesses ?
Page 3 of this document, #5. The important things to emphasize is that tax brackets are MARGINAL. The "beyond" part is critical, it keys in to the idea of marginal tax brackets that mystifies a lot of people who just dump off their W2 to a "tax man"). There is no such thing for example as getting an income increase and losing money because you "moved up into a higher tax bracket".
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5. He’s going to raise my taxes!
Only if your family makes $250,000+ (top 3%) will your marginal income tax rate go up slightly. And only money made beyond $2 million (<1%) will see significant tax increases.
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As for small business, I don't have anything about that in the "BIG 5" misconception document. I imagine there are two main claims: one that a paying a $15 min wage is going to hurt small businesses's bottom line, and another (if they didn't offer healthcare before) that the new payroll tax will decrease their profits.
I suppose my rebuttal to that would be in multiple parts. If the small business owner is someone who currently offers private health insurance, you can easily swing them with #1 i think. If they don't currently offer private health insurance, it's a tougher sell; their out of pocket expenses will undoubtedly go up if assuming that their current business won't see any growth in consumers. As a result, you have to convince them that the logic chain in #2 is valid.
(1) Single payer healthcare. I'm sure a lot of small businesses love to hire people part time, because it means they don't have to provide them health care. Granted, you aren't REQUIRED to provide health care to employees even if they are full time (if under 50 employees, which most small businesses fall into I imagine), but this has basically become the norm for most businesses as far as I know. Why? Because it provides yet another avenue for competition (our company A has health insurance plan X, it's far better than company B's plan!). This avenue of competition is completely irrelevant to the business itself, which I imagine is frustrating to entrepreneurs who got into the business aspect because they wanted to market a particular product or service, not fret about a healthcare policy for their employees. On single payer you will pay more taxes (6.2% payroll tax), but you are no longer burdened with providing healthcare and competing with other businesses with regards to healthcare packages and premiums. This is good for entrepreneurs.
(2) Higher minimum wage. The entire premise of raising the minimum wage benefits small businesses in the same way it benefits the economy: the more disposable income a person has, the more likely they are to spend it, which means businesses make more profit, and the economy grows. People making the current minimum wage can't even afford rent; there is a huge influx of consumers with disposable income that will be unleashed when the minimum wage goes up. Will this drive up the cost of goods? Yes. But the rise won't be as high as the rise of the minimum wage. Doubling the minimum wage isn't going to double the cost of goods. Also, and this is more an aside, but Bernie's plan for a minimum wage won't reach $15/hr until 2020, it scales incrementally.
(3) A ton of good information here:
http://feelthebern.org/bernie-sander...repreneurship/
EDIT: I think I actually may have figured out where the person may have been getting the 60% number. If you take the 6.2% payroll tax on businesses which replaces their need to private healthcare, and you take the 2.2% income tax on individuals for private health care, and you take the 52% tax bracket on dollars made over 10 million, you do get 60%. So if his/her small business makes over 10 million dollars, then yes they would pay a 60% tax (on dollars made over 10 million). But they would have free healthcare, and they would not need to offer healthcare to their employees (likely negating or all but negating the combined 8.4% (6.2 + 2.2) component of the 60% number).
Last edited by beansroast01; 03-29-2016 at 03:02 AM.