Both presidential candidates Hillary Clinton and Sen. Bernie Sanders (I., Vt.) have proposed tax plans that would reduce the economy’s size, eliminate jobs and lower wages, according to recent reports from the Tax Foundation.
Clinton’s plan would raise taxes by $498 billion over the next decade to pay for the new and expanded government programs she has touted while on the campaign trail. The increase in marginal tax rates on income, labor, and capital she has proposed would reduce GDP by 1 percent over the next decade.
This move would eliminate 311,000 jobs and lower after-tax incomes of all taxpayers by 0.9 percent.
Sanders’ plan would raise taxes by $13.6 trillion over the next decade to pay for the $18 trillion in spending he has proposed. Sanders’ will not only tax high-income households, but the middle class as well. His plan includes new income tax brackets with rates of 37 percent, 43 percent, 48 percent and 52 percent.
The proposed tax rates would reduce GDP by 9.5 percent in the long run, which would lead to 12.84 percent lower after-tax incomes for all taxpayers and an elimination of 6 million jobs.