America transitions over to 100% renewable energy and net-zero carbon emissions by 2030, thus creating jobs
….and likely destroying more jobs than it creates, since the new technologies are more efficient from a production/labor standpoint…..
The Green New Deal also calls for massive social and economic reform including substantially raising — nearly doubling — the rate on multi-millionaire income tax brackets to help fund the project (an historically moderate policy that is massively popular with the world’s leading economists), implementing a single-payer healthcare system, alleviating the student debt burden to help revive the middle-class, a guaranteed government jobs program, and other ideas like implementing a universal basic income package that would help close the country’s massive income gap.
When the people proposing this mess get honest and admit that they’ll be substantially raising taxes on ALL Americans to get there (doubling to tripling marginal rates on the top half of the middle class and upper middle class, ending the practice of taxing the lower quintile at negative income rates, and taxing the second to bottom quintile SOMETHING — where today they pay nothing) I’ll listen. Not until.
This top rate of 70% on 10M will take in money that is essentially a rounding error to the Treasury. Why? Because outside of a very few athletes and entertainers, nobody in the country has an adjusted gross income over 10M. People who do have incomes over that level get paid in stock options (not taxed until sold) and capital gains (flat tax rate, and if that gets changed, you crush the entrepreneurial sector funded by venture capital).
It doesn’t take a lot of knowledge or math to work out the above, btw. It’s a simple matter of looking up a few tables and plugging the numbers into Excel. Even if you taxed all income above ONE million (not ten) at 70%, it would come out to about 16% of the Green New Deals low cost estimate of 4 Trillion a year.
So, sorry, Alexandria Ocasio-Cortez, you have to tell us where the other 84% of the money is coming from, and not get snarky when you’re asked.
If you want Euro style benefits, you have to be taxed like Europeans. That means a LESS progressive tax system than we currently have, where the top 45–50% of your wage earners are paying a marginal rate of about 55%, with less deductions than we have in our system. (The Europeans learned the hard way that if you tax your upper earners more than 55%-ish, you take in very little additional money, because capital goes flying out of the country.)
Let’s have a look at how this would work. Here’s the rates for 2019:
The median family income in the US (middle column above) is about $58,000 a year. So, everyone in the US who is currently paying in the 22% and above brackets would get raised to 55% to 60%. PLUS, about half the people in the 12% bracket would get kicked up to that 55% rate as well.
(Let’s just stop for a moment and dwell on that. You’re a blue collar worker eking out a living, your family making the national median. You’re having a nice Saturday with your family, tossing a frisbee to the dog, when the radio starts telling you your taxes are going to go from 12% to FIFTY-FIVE PERCENT, and in return, you’re going to get ONE problem solved (health care) and MAYBE another one (college education) that you’re not sure you’re going to have.)
Think that sells? :-)
But wait, there’s more! Europeans also fund with national sales taxes (aka VATs) that run as high as 25% in some countries. So, that package of underwear that today sells for $19.95, for which you pay $21.50 for (8% sales tax) is going up to $26.50!
The most heinous myth the liberals hold in the US is the idea that we can have a European style social welfare package by only taxing the rich. Can’t happen. There’s just not enough rich.
but the Green New Deal is seeing a meteoric rise in momentum among progressive citizens and politicians alike.
Sure. Because it’s proponents are telling everyone that it’s basically all for free, that all it takes is to raise taxes on that “rich guy”. A free lunch is always easy to sell.
So here’s what needs to happen
What needs to happen is for everyone to get real.