Andrew Yang wants the government to give every adult in America a thousand bucks a month. There are around 250,000,000 of us, so that works out to about $3 trillion a year and would not quite double federal spending. (That’s roughly $3.8 trillion.) He would pay for it with a value added tax that he estimates would bring in less than a trillion dollars a year.
Math is hard, so I’m not sure how that works out in the real world, but I was able to do the math necessary to see the federal government already costs the average adult American over $15,000 a year.
Let’s assume that we’re willing to give kids a free ride until they reach 18. In that case, the average adult’s fair share (that is, the average tax rate) should be whatever proportion $15,000 is of the average income. Average income is about $47,000, so that implies a combined federal (FICA, income, excise, VAT, whatever) tax rate in the range of 32 percent. There aren’t enough rich to soak with the 70 percent max rate proposed by one of the B-Card Democrats won’t pull the average up that high.
Socialist governments traditionally do make a financial mess. They always run out of other people’s money. It’s quite a characteristic of them.
Yesterday’s TKPOTD dealt with one of The
Dread Deadbeat Pro-Se Kimberlin’s failure to pay attention to details. So does today’s which originally ran five years ago. This was one of my favorites of his screwups.
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Here’ another example of The Dread Pro-Se Kimberlin’s carelessness in his pleadings. It’s from the prayer for relief in his proposed second amended complaint.$2,000.000 is two-thousand dollars. The last time I checked, $2,000 does not exceed $75,000.
That math error is not the only consequential problem with that claim.
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Math is hard.
Jeff Dunetz has a post over at The Lid about ¡Ocasio! She Guevara’s “tax fairness” proposal. He quotes her as saying.
You know, you look at our tax rates back in the ’60s, and when you have a progressive tax rate system, your tax rate let’s say from zero to $75,000 may be 10 percent or 15 percent, etc. But once you get to the tippy-tops on your 10 millionth dollar, sometimes you see tax rates as high as 60 or 70 percent …
Uh, wrong! The 70 precent top rate on incomes above $100,000 was a holdover from the ’40 and ’50s. One of the key accomplishments of the Kennedy Administration in the ’60 was to get the top rate lowered to 50 percent as a means of stimulating economic growth. Even corrected for inflation, her imagined threshold income for the top rate is an order of magnitude higher than the ’50s value. She’s set her definition of rich too high.
In any event, her numbers don’t add up with the current distribution of incomes. Jeff includes the following table—The top marginal rate is now about 40 percent. If doubling the rate didn’t result in the rich moving more of their their assets offshore and the taxman could take twice as much money from them, one could expect about a 20 percent increase in revenue. Personal income taxes would increase 40, but personal income taxes are only about half of the government’s take. That would provide roughly 800 billion dollars a year, which would not quite offset the deficit expected before implementing She Guevara’s Green New Deal. In fact, doubling everyone’s taxes wouldn’t provide enough money to fund her schemes.
UPDATE—With her congressional pay, Ms. Occasional-Cortex will be entering the upper 5 percent of income earners. Perhaps this will provide her with the same sort of practical education experienced by other who have climbed the income ladder.
Sarah Hoyt has a long essay over at According to Hoyt very effectively demonstrating the stupidity of She Guevara’s proposed Green New Deal. Ms. Hoyt does this in a most unfair manner by using Real World data and numbers and math. For example, consider the cost of green energy upgrades to “every” residential and commercial building.
That estimate— which, frankly, for a full remodel of an average 2,500 square foot home to state-of-the-art anything is still probably small— would put the cost of this project at 1.36 trillion dollars. Oh, plus another 336 billion dollars if we assume renovating commercial buildings costs only about 6 times as much, per building, as private homes. Or, for convenient reference, a bit more than the 1.688 trillion the government is expected to make in personal income taxes. Again, by fairly conservative estimates. This could be way higher.
Read the whole thing. I did, and in the process I also found couple of useful new terms to use in reference to the young congresscritter-elect: ¡Ocasio! and kindercaucus.