The tax plan of Democratic presidential candidate Bernie SandersBernie SandersWarren to rally Wisconsin college students for Feingold Democrats target Libertarian ticket Senate Dems: Don't leave for break without Supreme Court vote MORE would raise trillions of dollars and lead to about 6 million fewer full-time jobs, according to an analysis released Thursday.
Analysis: Sanders tax plan would raise trillions, cost jobs
Sanders's plan would raise $13.6 trillion over 10 years when not considering economic effects. It would raise $9.8 trillion over the next decade when taking economic changes into account, according to the free-market Tax Foundation.
The Tax Foundation estimates that Sanders's tax plan would raise far more revenue than the proposals from his main rival for the Democratic presidential nominee, Hillary Clinton. The group estimated earlier this week that Clinton's plan would raise nearly $500 billion when not accounting for economic changes and lead to about 300,000 fewer full-time equivalent jobs.
On the other hand, the Tax Foundation has estimated that some of the Republican presidential candidates' tax plans would cost more than $1 trillion but would lead to an increase of millions of jobs.
The Clinton campaign has criticized Sanders for proposing tax increases on the middle class, and she has pledged not to raise taxes on those making less than $250,000 a year. But Sanders has said that his across-the-board tax increases will translate into even greater healthcare savings.
The largest revenue sources in Sanders's plan come from new "healthcare premiums" — a 6.2 percent payroll tax on employers and a 2.2 percent increase in the individual income tax, the Tax Foundation said. These taxes, along with others, would be used to pay for Sanders's single-payer healthcare plan.
Sanders's plan would lower gross domestic product (GDP) over 10 years by 9.5 percent because it raises marginal tax rates on labor and income. It would lower wages by 4.3 percent, according to the Tax Foundation.
When not accounting for economic changes, Sanders's plan would lower the after-tax incomes of taxpayers' in all income groups by at least 4.87 percent and the after-tax incomes of the top 1 percent by nearly 18 percent. When considering economic effects, the plan would lower taxpayers' after-tax incomes by at least 12.84 percent, with the top 1 percent seeing a decrease of nearly 25 percent, the group said.