How Bernie's 90% Income Tax will kill Blue Governments! (AMT hurts!) [Vanity]

As I sit here doing my 2016 tax training (I am an Enrolled Agent), I am wondering how many Blue State / Blue City politicians have really realized how much of a disaster SOCIALIST Sen. Bernie Sanders would be if he were to be elected and pass his proposal for increasing the Federal Income Tax rates? This post is an effort to answer his campaign point of "Why can't we return to the Eisenhower tax rates?"

Well Bernie, are you a proponent of the Alternate Minimum Tax (AMT)? Don't bother answering, your record answers for you! This being the case, you are on record for favoring 100% PLUS Income Taxes and corresponding rate increases down the income scale. A published report had a Washington DC revenue official pointing out that a $75k family of four (2014) in Bridgeport, Connecticut paid State & Local taxes of 21.8%. We have been absolutely assured by all politicians that these taxes are the ABSOLUTE MINIMUM needed to keep government running!

Now a small problem appears with the combined effect of various tax codes. Under AMT, which is effecting an ever larger group of PAYING taxpayers, certain common deductions get reduced or tossed out completely and of most interest here is, TA DA, State, local, and foreign income, war profits, and excise taxes, State, local, and foreign real property taxes & State and local personal property taxes. Bernie, in your progressive Socialistic IDIOCY, you have seemed to gloss over the fact that with the reductions of Federal Tax Rates, the States and Local governments have had the economic freedom (i.e. free cash flow) to increase their ABSOLUTE MINIMUM taxes AND, coincidentally I'm sure, Democrat 'Blue' politicos have done it with more enthusiasm.

So Bernie, in the unfortunate case that you do get elected, you might find your a$$ in a crack of your own doing. Gee, I would love to see all of those big government liberals get tar&feathered for impossible tax consequences, but I'd rather that you just not get there!

FYI: The IRS & the Tax Code stink like month old fish rotting in the sun! Nothing will be done about it because too many people depend upon too many of its social engineering provisions like Mortgage Interest deduction and EITC. SIGH!

People like Saunders seem to have a very simplistic and inaccurate world view in which people are divided up into Scrooges and Tiny Tims. If you have accumulated financial stability and make a good income, even though based upon your own hard work, you are a Scrooge, and thus must ‘give’ more. If you don't have financial stability, and perhaps don't work at all, even if this is because of recurrently bad personal choices or lack of ambition or initiative, you are automatically Tiny Tim, and deserve access to the money of the Scrooges.

Of course, people like Saunders want to be paid off the public dole, and get great credit as humanitarians, while they decide how best to redistribute the earnings/wealth of those he labels Scrooges.

Of course, people like Saunders want to be paid off the public dole, and get great credit as humanitarians, while they decide how best to redistribute the earnings/wealth of those he labels Scrooges.

This is where Sen. Sanders intersects with Dr. Milton Friedman's "Spending Matrix" and demonstrates why Government 'Spending' is the most spendthrift of all! Dr. Friedman developed (or made famous) the following spending guidelines in sequence of descending care and stewardship;

1) Spend your own money on yourself.
2) Spend your own money on somebody else.
3) Spend somebody else's money on yourself.
4) Spend somebody else's money on somebody else.

Obviously #4 is Government and an EMPHATIC example is the LBJ "War on Poverty" that has spent TRILLIONS with the poverty rate, over the 50 years, being little changed! However the social matrix with bad behavior being effectively rewarded (Out-of-wedlock births) has, IMHO, deteriorated society!

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