Bernie Sanders, Dems Propose Investment Gains Tax Hike to Pay for Social Security Expansion

[SirLinksALot]

SOURCE: PJ MEDIA

URL: https://pjmedia.com/news-and-politics/2017/02/23/sanders-dems-propose-investment-gains-tax-hike-to-pay-for-social-security-expansion/

by Nicholas Bailey


WASHINGTON – Congressional Democrats introduced a bill that would increase the investment gains tax by 6.2 percent for households with adjusted gross income of $250,000 and above to pay for an expansion of Social Security.

Sen. Bernie Sanders (I-Vt.), sponsor of the Social Security Expansion Act in the Senate, said the proposed “net investment income tax” increase from 3.8 percent to 10 percent would make “millionaires and billionaires” pay more in taxes to expand Social Security and extend the life of the program. The investment gains tax originally became law as part of Obamacare.

“Everybody in this room knows that Social Security hasn’t added a nickel to the debt. It’s tax breaks for billionaires and the war in Iraq and an inflated military budget that in fact led to the high deficits and the national debt,” Sanders said during a press conference on Capitol Hill last week with the organization Social Security Works.

“Starting at $250,000 and going up, the top one and a half percent will be paying more in taxes, and at a time of massive income inequality that is appropriate. And what will we do with that additional revenue? We are going to extend the life of Social Security for 61 years. How’s that? And we’re going to expand benefits, not cut them,” he added.

Sanders said seniors earning less than $16,000 per year would see their Social Security benefits go up by about $1,300 each year with the bill in effect.

“We can expand benefits. We can extend the life of Social Security if we have the guts to tell the millionaires and the billionaires yes they are going to have to pay a bit more in taxes,” he said.

In addition to Sanders, Sen. Elizabeth Warren (D-Mass.), Rep. Peter DeFazio (D-Ore.) and other members were on hand to announce the legislation.

Warren criticized President Trump for nominating Rep. Mick Mulvaney (R-S.C.) as director of the Office of Management of Budget.

“Donald Trump has already turned his back on his promise to protect Social Security. He has turned his back on millions of seniors. What’s he doing? He has put Congressman Mulvaney in charge of the Office of Management and Budget. This is a man who says we just need to raise the retirement age to 70 – talk about a man who has never done any heavy lifting for work, right?” Warren said at the news conference. “He says it’s perfectly reasonable to cut Social Security.”

If passed and signed into law by Trump, the legislation would apply the payroll tax to income above $250,000 and raise the Social Security tax on investment income from 3.8 percent to 10 percent.

According to the text of the bill, 62 percent of the investment income tax revenue would be distributed to the Federal Old-Age and Survivors Insurance Trust Fund and 9 percent would be applied to the Federal Disability Insurance Trust Fund.

The new revenue collected would help pay for increasing the “primary insurance amount” for qualified beneficiaries starting in 2021 and “revise computation of cost-of-living adjustments to use the Consumer Price Index for Elderly Consumers.”

Sanders said Trump should support their bill since he pledged not to cut Social Security during the presidential campaign.

“I think Trump was as clear as he could be and if he goes back on these words, he is lying to the American people,” Sanders said after reading past quotes from Trump about protecting Social Security.

[Frank Cannon]

Didn't Little Chucky Schumer complain that the GOP was making the Lyin' Injun the face of their party? Well right here she is grandstanding again.

[goatprairie]

 Sanders is almost a perfect reverse barometer. To be successful you do exactly the opposite of a what a socialist suggests.

[geronl]

First of all, $250,000 income does not make one a millionaire or billionaire.

Second, the program as it exists is supposedly self-funding (we all know it's not)

Third, JUST NO.

Fourth, you can tax the top 1% at 100% and it would not pay for your socialist schemes.

[Applewood]

All that stupid in one place. 

"Sanders said seniors earning less than $16,000 per year would see their Social Security benefits go up by about $1,300 each year with the bill in effect."

////

Doesn't that sound familiar?  Sorta like the $2500 premium savings from Obamacare.

Didn't happen for anyone I know.

[Wingnut]

All that stupid in one place. 

Wait till Princess Spreading Bull starts her 2020 run.   Stupid will be on display

[geronl]

Wait till Princess Spreading Bull starts her 2020 run.   Stupid will be on display

There'll be a glut in the manure market.

[Hondo69]

I have a counter proposal.  Let's put all federal politicians, current and past, in prison if it can be shown they've mucked up the Social Security system.

Sure it's crazy talk but it does serve one important purpose.  It puts the focus where it belongs.

All these politicians like Sanders come along and say, "Don't pay attention to all the mistakes we made in the past, you can trust us this time".  They are never forced to make their case using cold hard facts and explain why this time will be different.  Well lets take a walk down memory lane and take a hard look at how we got here.

[Hondo69]

If you really want to give Seniors a raise there is a very simple method - stop taxing Social Security benefits.

It's insane.  The federal government has essentially been saying: "Put a little money into the pool as you go and we'll hold it for you until you retire.  It's your money, of course, we're just holding it for you.  Now we won't pay you a single cent of interest for holding that money for you, but we sure as hell will tax the bejesus out of you when the time comes for us to give you your money back."

Taxing Social Security benefits is wrong on so many levels, yet the average American doesn't even realize Senior are being taxed on their own money.  There is an easy fix.

[Applewood]

I have a counter proposal.  Let's put all federal politicians, current and past, in prison if it can be shown they've mucked up the Social Security system.

They should be in jail for theft and fraud. 

Seniors were promised that their SS investment would be put in a "lock box."  That money would never be touched. 

Well, Washington has been  raiding SS ever since.  They have stolen the money these seniors have earned and used it to pay for every socialist scheme.  It's been alleged that  some of that money went into the pockets of our elected representatives. 

Even knowing that SS is in trouble, the fund is still being raided.  A while back, the Zadroga Act (providing compensation to injured emergency responders on 9/11) was passed.  Guess where the money to pay that compensation is coming from?

If the DOJ and the FBI had any guts, they would investigate.  My guess is that the plunder of Social Security is much more extensive than we know.

[IsailedawayfromFR]

"Everybody in this room knows that Social Security hasn’t added a nickel to the debt."

I used to think people who said that were just idiots.

Now they are scary idiots as a lot of them are in Congress, not on the sidelines.

[Applewood]

"Everybody in this room knows that Social Security hasn’t added a nickel to the debt."

I used to think people who said that were just idiots.

Now they are scary idiots as a lot of them are in Congress, not on the sidelines.

In this case, they aren't idiots.  They are liars and thieves.   They have become adept at conning unsuspecting Americans.  I'm amazed at how many supposedly well educated individuals buy the snake oil every time. 

[montanajoe]

In this case, they aren't idiots.  They are liars and thieves.   They have become adept at conning unsuspecting Americans.  I'm amazed at how many supposedly well educated individuals buy the snake oil every time.

Actually, the Dims and Trump know the electorate will always vote in their own self interest. If a politician promises them something they perceive will benefit them economically they have got their vote.

Would not be surprised to see this or something very similar used by Trump to get Congress to go along with his spending in other areas...

[IsailedawayfromFR]

Actually, the Dims and Trump know the electorate will always vote in their own self interest. If a politician promises them something they perceive will benefit them economically they have got their vote.

Give a few conservatives credit, please. Always?  How would we get any conservatives elected if what you said is the case?  How would so many of the thousand elections lately lost by Dims occur?

There a few who have some morality and wish to do what is patriotic rather than selfish.  At times, they might even be the majority.

[montanajoe]

Give a few conservatives credit, please. Always?  How would we get any conservatives elected if what you said is the case?  How would so many of the thousand elections lately lost by Dims occur?

There a few who have some morality and wish to do what is patriotic rather than selfish.  At times, they might even be the majority.

Call me a cynical but I simply don't buy that. Trump did not win in coal country and the rust belt due to an outpouring of moral and patriotic voters. He won because he promised the government would some how find a way to give them jobs.

As far as getting conservatives elected ....republicans who will line their own pockets at the public's expense absolutely, moral and patriotic conservatives not so much...