Bernie Sanders as President: How Would It Impact Average American Taxes?

It is highly unlikely that the election of Bernie Sanders or any other candidate will result in immediate changes to the U.S. tax system. This reality is deeply rooted in the complex political landscape of the United States, where significant changes to tax laws require bipartisan cooperation, something that is scarce.

The Current Political Landscape

The outcome of the 2024 election will depend heavily on how the Senate is divvied up. Given the current majority status of the Republicans in the Senate and the Democrats in the House, significant tax reforms would need the support of both chambers. Given these conditions, a mere change in the presidency would not automatically result in widespread changes to the tax system.

The Role of Bipartisan Support

Even if Bernie Sanders were to win the presidency, his administration would still need the cooperation of Congress to pass any tax reform proposals. The GOP-controlled Senate would be highly unlikely to work with a Democratic socialist like Sanders to increase taxes. Moreover, pressure from the far left within the Democratic Party might result in a loss of support if a tax proposal posed a threat to the middle class, a demographic that Sanders has historically championed.

The Influence of Lobbyists

Regardless of who the president is, lobbyists will continue to play a significant role in shaping tax laws. With over 6,000 lobbyists working on tax issues in 2017, the influence of corporate America on the tax code is substantial. Lisa Gilbert, the Vice President of Legislative Affairs at Public Citizen, pointed out that the number of lobbyists working on taxes is overwhelming. In fact, the report by Public Citizen suggests that there are more than 11 lobbyists working on taxes for every member of Congress.

The mind-boggling number of lobbyists corporate America has hired to reshape the tax code is of almost biblical proportions and undoubtedly cost a fortune,” explained Gilbert. “But the rate reductions and other favors in the legislation will exact a far greater price on regular Americans."

It is clear that tax codes are complex and often benefit only a select few. The interests of the average American, particularly the middle class, can get lost in the process. For many middle-class working Americans, their overall tax bill, including Medicare (if implemented), and Social Security, will approach or exceed 50% of their gross income. Currently, the overall tax bill for the middle class is around 20-22%.

As the pressure mounts on politicians to advocate for policies that benefit their constituents, the role of lobbyists becomes even more critical. The influence they wield can lead to complex tax codes that often have unintended consequences for the broader population.

Impact on Middle Class Americans

From the perspective of a middle-class working American, the idea of higher taxes might seem like a trade-off for better healthcare. President Bernie Sanders has proposed implementing “BernieCare,” which would provide universal healthcare. However, the cost of this would be significant, as it would require all Americans to contribute more to their healthcare expenses.

“Your paycheck will get a lot smaller,” said a concerned report by Public Citizen, “but you are supposed to be happy because you get BernieCare and you are paying for many other people to have BernieCare who don't work."

This reality poses a significant challenge for middle-class Americans, who would face higher taxes and a reduced disposable income. Despite the benefits of BernieCare, the overall financial impact on the average American worker is a pressing concern.

Conclusion

The election of Bernie Sanders or any other candidate would not automatically result in immediate tax reforms. The complex political landscape and the influence of lobbyists mean that the tax system will continue to be shaped by a variety of interests, not just the needs of the average American. As the election approaches, it is essential to understand the potential impact of any tax and healthcare proposals on the middle class and the overall economy.

With lobbying efforts and political dynamics playing key roles, it is crucial to advocate for transparency and fairness in the tax system to ensure that ordinary Americans benefit, not just a select few.