Tag: Sen. Bernie Sanders

What Bernie Sanders means by ‘democratic socialism.’

These are the reasons I am supporting Bernie Sanders for president. This is the Washington Post article.

Bernie SandersGOFFSTOWN, N.H. — The shorthand that the media uses to describe Sen. Bernie Sanders (I-Vt.) has changed.

“It used to be that I was known as ‘the longest-serving independent in the history of the United States Congress,’ which is true,” Sanders said during an appearance Saturday at Saint Anselm’s College here. “Now I’m a ‘self-professed democratic socialist.’ Things change when you run for president.”

In response to a student’s question, Sanders, whose campaign for the Democratic nomination has surged in recent weeks, went on to give a lengthy of explanation of what “democratic socialism” is — and is not.

“So what does that mean?” Sanders asked the students. “Does anyone here think I’m a strong adherent of the North Korean form of government? That I want all of you to be wearing similar colored pajamas?”

When the laughter died down, the longest-serving independent in Congress asked how many of the students were familiar with the Scandinavian countries of Denmark, Finland and Norway.

“Are these democratic societies? Obviously they are,” Sanders said, relaying that voter turnout in Denmark tends to approach 90 percent.

“Is it a society where the government owns every mom-and-pop store?” he asked. “Of course not. You have all kinds of capitalist entrepreneurship going on, a lot of wealth being created. But what else do you have? … An effort to make sure that all people benefit from the wealth that’s being created. So you have a much more equitable distribution of wealth and income. … I talked to a guy from Denmark, and he said, ‘In Denmark, it is very hard to become very, very rich, but it’s pretty hard to be very, very poor.’ And that makes a lot of sense to me.”

In Denmark, Sanders said, health care is a right, and college education is free. “Sounds like a very terrible form of government,” he said sarcastically.

In Finland, Sanders said, the public education system is the strongest in the world. There’s a strong child care system. Wages are generally higher than in the United States. And retirement programs are strong.

“Now is all that stuff free? No,” Sanders said. “They pay more in taxes. … And the wealthy there pay a lot more in taxes.”

But at the end of the day, Sanders said, Americans should ask themselves what it would be like to have a country where the elderly don’t have to worry about how to pay for prescription drugs, where all parents have access to high-quality child care, and where they know their children can go to college, regardless of their income.

Sanders acknowledged the Scandinavian countries he cited “are no utopias.” But he asked his audience to compare how secure people are there compared to here.

“We’ve got an economy that basically says everybody is out there on their own,” he said. “And if you don’t make it, well that’s tough luck. You don’t have any health insurance and you get sick, good luck to you. … You’re a bright kid and you come from a family that doesn’t have any money. Tough luck, you’re not going to go to college.”

“So what democratic socialism means to me,” he said, “is having a government which represents all people, rather than just the wealthiest people, which is most often the case right now in this country. And it is making sure that all of our people have health care as a right, education as a right, decent housing as a right, child care as a right. That’s what I believe.”

A Progressive Estate Tax in the United States

This idea won’t become law but it should.

By:  Sen. Bernie Sanders (I-Vt.)

Huffington Post

Monday, September 8, 2014

The founders of our country declared their independence from what they viewed as a tyrannical aristocracy in England. More than two centuries later, today’s tyrannical aristocracy is no longer a foreign power. It’s an American billionaire class which has unprecedented economic and political influence over all of our lives.

Unless we reduce skyrocketing wealth and income inequality, unless we end the ability of the super-rich to buy elections, the United States will be well on its way toward becoming an oligarchic form of society where almost all power rests with the billionaire class.

In the year 2014, the U.S. has by far the most unequal distribution of wealth and income of any major country on earth. This inequality is worse than at any time in our country’s history since 1928. Today, the top 1 percent owns about 37 percent of the total wealth in this country. The bottom 60 percent owns only 1.7 percent of our nation’s wealth.

At a time median family income is $5,000 less than it was in 1999, the net worth of the top 400 billionaires in this country has doubled over the past decade. The top 1 percent now owns more wealth than the bottom 90 percent of Americans and one family, the Walton family of Wal-Mart, owns more wealth than the bottom 40 percent of Americans. 

In terms of income, the top 1 percent earns more than the bottom 50 percent. Since the Great Recession of 2008, 95 percent of all income gains in the U.S. have gone to the top 1 percent. While the rich have become even richer, more Americans are living in poverty than at any time in our nation’s history. Today, half of Americans have less than $10,000 in savings. We have the highest rate of childhood poverty – 22 percent – than any major country on earth.

More than a century ago, President Theodore Roosevelt recognized the danger of massive wealth and income inequality and what it meant to the economic and political well-being of the country. In addition to busting up the big trusts of his time, he fought for the creation of a progressive estate tax to reduce the enormous concentration of wealth that existed during the Gilded Age.

“The absence of effective state, and, especially, national, restraint upon unfair money-getting has tended to create a small class of enormously wealthy and economically powerful men, whose chief object is to hold and increase their power,” the Republican president said. “The really big fortune, the swollen fortune, by the mere fact of its size acquires qualities which differentiate it in kind as well as in degree from what is passed by men of relatively small means. Therefore, I believe in … a graduated inheritance tax on big fortunes, properly safeguarded against evasion and increasing rapidly in amount with the size of the estate.”

Roosevelt spoke those words on Aug. 31, 1910. They are even more relevant today.

A progressive estate tax on multi-millionaires and billionaires is the fairest way to reduce wealth inequality, lower our $17 trillion national debt and raise the resources we need for investments in infrastructure, education and other neglected national priorities.

I will shortly introduce legislation that will:

• Call for a progressive estate tax rate structure so that the super wealthy pay their fair share of taxes. The tax rate for the value of an estate above $3.5 million and below $10 million would be 40 percent. The tax rate on the value of estates above $10 million and below $50 million would be 50 percent, and the tax rate on the value of estates above $50 million would be 55 percent.

• Include a billionaire’s surtax of 10 percent. This surtax on the value of estates worth more than $1 billion would currently apply to fewer than 500 of the wealthiest families in America worth more than $2 trillion.

• Close estate tax loopholes that have allowed the wealthy to avoid billions in estate taxes. Some of the wealthiest Americans in this country have exploited loopholes in the tax code to avoid paying an estimated $100 billion in estate taxes since 2000. My bill would close those loopholes.

• Exempt the first $3.5 million of an estate from federal taxation ($7 million for couples), the same exemption that existed in 2009. Under this legislation, 99.75 percent of Americans would not pay a penny in estate taxes. 

This legislation would exempt more than 99.7 percent of Americans from paying any estate tax while ensuring that the wealthiest Americans in our country pay their fair share.

I agree with former Labor Secretary Robert Reich who wrote, in support of this legislation, that America “is creating an aristocracy of wealth populated by heirs who don’t have to work for a living yet have great influence over how the nation’s productive assets are deployed.” He is right in calling the proposal that I’ve laid out “a welcome step toward reversing this trend.” Let’s fight together to see that it is implemented.