What is Bernie Sanders' Plan for the Deficit / Budget / Debt?

I've seen this question pop up a lot in one form or another. So, first let's have a little vocabulary lesson.

The budget is when the government plans where to spend money and how much to spend for the fiscal year. This isn't concrete. The government can over or under spend in areas just like you or I.

The deficit is when the government spends more money than it takes in.

And the debt is when the government borrows money to account for the money it overspent.

When a country doesn't have a deficit, this does not mean that leftover money automatically goes toward the debt. The government has to decide to what to do with that extra money, and it could just as easily (and probably more likely) be spent on something else than go toward the debt.

For 2015, the US is estimated to have a deficit of $583 billion and a debt of $18.6 trillion.

General Provisions

I don't know what Bernie Sanders plans to do about this in the way of specifically setting aside money to pay back the debt or putting in careful calculations to make sure we don't have a deficit. But I do know he's looking for specific ways to cut spending.

Military Spending

We currently spend more money in military spending than the next 9 countries combined. The Military budget for 2015 was $598.5 billion. Bernie Sanders wants to cut that. He hasn't said how much, but we could cut the budget by 60% and still lead the world in defense spending. If we did that, we'd have $359.1 billion in savings.

https://www.nationalpriorities.org/campaigns/us-military-spending-vs-world/

Mass Incarceration

The 2.4 million people we imprison in this country, costs us $80 billion a year. If we ended the War on Drugs and gave people medical treatment instead of putting them behind bars (as Bernie Sanders wants to do), this would cut our prison costs by over half, saving $41.3 billion a year. (Ah! You say. But what about health care costs? We'll get there.) This would also save money in welfare costs as about half of US states provide welfare for convicted felons who struggle to find jobs once released.

Ending Off Shore Tax Havens

Bernie Sanders wants to put an end to offshore tax havens, which allow corporations and rich Americans to store money overseas. They then pay less taxes to other countries, which costs the federal US government $150 billion year and state governments a total of $39.8 billion a year (source).

Ending Corporate Welfare

No one knows for certain how much money is paid to corporations each year in subsidies, but it's estimated to cost $110 billion a year. The top 8 paid corporations (such as Boeing, Nike, Shell, and Intel) made up $22 billion of that cost last year. (And while you're at it, here's a Top 30 list.) A number of these companies are Fortune 500 companies that don't need government handouts, and some of them aren't even US companies (source). Bernie Sanders isn't against business, but he is against giving tax payer dollars to corporations that already making millions or billions of dollars in profit.

Raising the Minimum Wage

It's estimated that $152.8 billion a year is spent in taxes on welfare programs for minimum wage employees who don't make enough to support themselves or their families. Raising the minimum wage to $15 an hour would eliminate that cost.

Tax Reform for the Rich

No one knows the exact numbers, but it's estimated that 25% of millionaires and at least the top 400 billionaires pay less in taxes than the average middle class American. Bernie Sanders wants to fix this by raising income taxes on the richest Americans, abolishing tax cuts for millionaires and billionaires, and changing the cap on and raising the estate tax. It's estimated reform on the estate tax alone would bring in $31.9 billion a year. We don't currently have numbers for the other areas.

Tax Wall Street

Bernie Sanders wants to implement a Financial Transaction Tax (a.k.a Robin Hood Tax), which is a small tax (.003%) on each transaction of a stock or bond. This would bring in $35.2 billion a year.

Specific Programs

The following includes a number of programs that Bernie Sanders wants to implement a discussion on how they may or may not contribute to deficit. You can read more specifics about these bills in a previous post.

Green Energy Initiatives

The Climate Protection Act and Sustainable Energy Act implements a number of green energy initiatives. This would be paid for by implementing a $20 carbon tax per ton of carbon emissions, rising by 5.6% per year over 10 years. The bill would also end fossil fuel subsidies. The revenue from these bills would generate approximately $300 billion to go specifically toward debt reduction.

Tuition Free College

Bernie's College for All Act would be paid for by taxes on Wall Street. While the bill costs $47 billion, the taxes on Wall Street is projected to bring in hundreds of billions of dollars a year. And extra revenue could be used elsewhere.

Create Jobs Rebuilding America's Infrastructure

Bernie Sanders' Rebuild America Act would cost $1.6 Trillion (paid for by the development of a National Infrastructure Development Bank that would then give out loans). However, this bill would presumably provide jobs for those who are unemployed, saving in welfare costs. This bill would also build up our infrastructure to allow it to compete with the rest of world. A study by Duke University estimates that every dollar spent into transportation infrastructure pays back $3.54 in economic impact. It's not clear how exactly this would impact the deficit, but it's information worth having.

Health Care

I don't know how much Bernie's American Health Security Act would cost (someone smarter than I will have to look at it). But is it estimated that the US spends $3.1 trillion on health care. That includes $374 billion in prescription costs, which Bernie wants to lower. It also includes $836 billion in Social Security costs for Medicare, Medicaid, Children's Health Insurance (CHIP). The American Health Security Act would replace these programs along with Federal Employee Health Benefits (FEHB), TRICARE, and provisions under the Affordable Care Act.

Whatever the cost of Bernie's American Health Security Act, it's important to note that its cost wouldn't go on top of what the US already spends in health care. The American Health Security Act would absorb the programs we already have. In effect, the money the government currently spends in health care programs would simply be transferred to the American Health Security Act, and our previous health care programs would be eliminated. So, one way or another, the cost of this new bill should come out as a general wash.

Conclusion

Bernie Sanders has a lot of changes he wants to make for America. It's easy to take them at face value and miss the cost savings underneath. Pass this article around for those who have questions.

UPDATE 09/19/15: Added more headings and a more of Bernie's programs

5 Attacks on Bernie Sanders and Why They're Bogus

Attacks on Bernie Sanders are to be expected in the presidential race. But that doesn't stop them from being ridiculous. Maybe we should all take a feather out of Bernie's hat and focus on the real issues instead of slinging mud everywhere?

Here are five common attacks (in no particular) order that just need to die already.

The Notorious "Rape Essay" (and all the others)

I've explain this before. But just in case it needs explained again, I'll reiterate. Bernie Sanders does not believe women fantasize about being raped. The essay was a badly written dark satirical article on the dangers of male and female gender norms. You can find the explanation here and more in-depth here.

And while we are on the topic, here is the rest of Sander's Freeman essays, written in the late 1960s and early 1970s. I expect the media to go a whole round with these. The most popular I've seen recently is Bernie's essay on how cervical cancer meant you weren't getting enough orgasms. (Side note: there have actually been modern studies that conclude orgasms may be a factor in reducing the risk of prostate, cervical, and breast cancer.)

We need to realize that these essays were written 40 years ago by a youthful and rebellious Bernie Sanders. How many dumb things can you remember doing or believing when you were young and rebellious? Anyone who actually thinks Bernie Sanders believes all of that stuff today is clearly lacking in the realm of human experience. People do dumb things. Then people learn. They change, and then they grow.

Ready to drop these essays yet? Because I certainly am.

Bernie voted against Amber Alert

Yes. He did. Though not for reasons people like to think.

Bernie has stated that he is a strong supporter of the Amber Alert program. The reason he voted against the bill was because it had unconstitutional riders attached, particularly the sentencing provisions that Bernie felt took power away from the judiciary branch.

This shows one of the great things about Bernie Sanders. He can support a piece of legislation, but he will vote against it if he feels certain provisions take away the rights of the people. You will find this is the case in a lot of legislation that Bernie is criticized for voting against. If only we could hold the rest of Congress to such a high standard.

Bernie is Pro Gun

No, he's not. It has been said Bernie is actually considered a "moderate" when it comes to guns as he walks a middle line. He's voted for background checks and bans on automatic guns. He's also voted for concealed carry in national parks and Amtrak trains and against the ability to sue gun manufactures.

One of the bills that comes up a lot in the media is the Brady Act, which mandated a 5-day waiting period for gun purchasers that Sanders voted against. What articles sourcing the vote never tell you is that Sanders voted against it because he was against a federal mandated waiting period. As a representative of Vermont, which has a very low gun crime rate, Sanders didn't think the federal mandate was fair for his particular state. So he did his job as a representative and voted the bill down. He did vote in favor of an amendment to the bill that mandated background checks.

You can read a full explanation on the Brady Act and see Bernie's votes on gun issues here.

You can also watch a video of Bernie talking about gun issues here.

90% tax on the rich

I have seen this video passed around a lot. People don't seem to realize that it's 30 seconds of a 3 minute and 50 second interview. Which means it's been taken completely out of context.

Here is the actual interview. In it, Bernie Sanders mentions Dwight Eisenhower, who taxed the rich at 90%. John Harwood asks Sanders if he thinks 90% is too high. And Bernie says, "no."

At no point during the video does Bernie say he intends to tax the rich at 90%. He only says that he doesn't disagree with Eisenhower's policies. There is a difference.

Here is an interview with Katie Couric where Bernie shuts down the 90% rumor.

Bernie is pro-Israel

Some people feel that he's pro-Israel because he's not what they consider to be pro-Palestine. But not being one thing does not make him the opposite. There is middle ground, and that's where Bernie stands. He would like to see a peaceful two-state solution to the Israel-Palestine conflict, believing that both sides have a right to exist in their own state.

You can read a statement Bernie gave in 2009 on the issue here. And a video from this year where he spoke on the subject.

Also, Sanders does not have Israeli citizenship. Can we just end that here and now? Or are we going to insist on it, even when given evidence to the contrary, like we did with Obama's birth certificate?

Seriously people. We have more pressing issues to deal with in this country. It's time we focused on them.

A Bernie Sanders Supporter's Debate Kit

It's hard to change people's beliefs. People don't want to let go, even when presented with hard, cold evidence. With that thought, I believe our efforts in promoting Bernie Sanders are best spent getting the word out to people who haven't heard of him rather than trying to convince someone who is against him to come to our side. But, sometimes you can't help finding yourself in a debate. On social media especially it can become inevitable, and nothing is more frustrating than not having sources to back up your claims. Here's some common arguments I've come across and resources to refute them.

This is a pretty long article. My suggestion for using it would be use a (Ctrl+F) function or a (Command+F) and type in a key word. That will help you find the section most useful to you without having to scroll through the whole article. If you don't find anything the first time, try a few other key words. And if you read through this article and still can't find what you are looking for, leave a comment.

When someone criticizes Bernie for running as a Democrat:

Use this article.

When someone says Bernie wants to tax at 90%:

They are usually citing this video. If they are, remind them that video is out of context. Then give them the full interview. Then follow up with this interview where Bernie shuts down the 90% rumor.

If they aren't citing the original video, just give them that last one.

When someone mentions Bernie "rape essay:"

Tell them it was a bad dark satire essay on the danger of gender norms. And then give them this.

When someone says we don't want another old, white man as president:

Ask them what's more important, someone's looks or their polices? And give them this.

When someone argues raising the minimum wage would destroy the economy/increase unemployment raise prices/cost small businesses/cost jobs/aren't deserved by unskilled workers:

Check out this myth buster master list.

Show them this video of a billionaire arguing that raising the minimum wage is a good thing. Also, here's the same guy confessing that billionaires are not job creators, the middle class is.

Here's another video you can share.

And a study by EPI

Just look at this.

Also remember that when minimum wage was first enacted by FDR, it was meant to start a living wage standard for American works, not be "starter wage" for teens or unskilled workers.

This blog post is also from the perceptive of a small business owner, who says that raising the minimum wage can be done without hurting small businesses if it's done right.

When someone says Bernie doesn't pay his interns $15 dollars an hour.

Traditionally, interns are paid nothing. From what I am aware, Bernie is the only presidential candidate paying his interns. Further more, Bernie's minimum wage bill phases the $15 an hour wage over 5 years, $9 in 2016, $10.50 in 2017, $12 in 2018, $13.50 in 2019, and $15 in 2020. If the raised minimum wage were in effect today, Bernie would be paying his interns MORE than the minimum.

Also, ask them why they are harping on Bernie for paying his interns $12 an hour and not any other candidates for paying their interns nothing.

When someone says Bernie's economics don't work:

Just give them this whole playlist.

When someone claims social security is bankrupt and dragging down our economy:

Tell them these are lies that have been passed around to get people to favor privatizing social security. Then show them this video.

When someone claims Bernie is a gun nut or wants to take away guns:

Tell them Bernie is for background checks and banning assault rifles. Then give them this video on Bernie's "Common Sense" gun control.

When someone claims Democrats did nothing during Obama's terms and that it's an obvious reason not to trust them again.

Tell them Democrats couldn't get the laws they wanted passed because the Republicans blocked them. Then give them this article.

When someone claims the rich already pay somewhere between 50% to 90% of taxes:

Give them this article on 2015 tax brackets that also includes a link to view other tax brackets.

And also this list of tax brackets from 1913 to 2013.

And then ask them where they got that tax percentage for the rich.

When someone says something incorrect on Bernie's stance on guns:

Give them this article and direct them to the handy chart.

When someone says Bernie is pro-Israel:

Tell them Bernie has stated a number of time that he believes in a two-state solution, that both sides have a right to exist in their own state. You can give them this article with video links on the subject.

When someone says socialism destroyed Greece:

Remind them that Greece failed because it had a huge debt they refused to acknowledge and kept adding to (give them this article). And then ask them if that reminds them of any other country they know of.

When someone mentions Venezuela:

Give them this article.

When someone claims no one wants a Socialist for president and that Bernie will never win:

Tell them most Americans agree with his views and give them this article.

When someone claims socialists "steal from the rich and give to the poor" or support "big government:"

Remind them that we're just asking everyone to pay their fair share and put money into social programs that are beneficial for everyone. No one is asking for the government to own or control anything. Give them this article.

When someone asks you to provide examples of successful socialism:

Remind them of our fire stations, our police force, our libraries, and national parks. Or just give them this list of 75 examples.

When someone says Socialism will destroy this country:

Just give them this list of 75 examples of socialist programs we all ready have.

When someone starts talking about Communism:

Remind them that socialism and communism are not the same thing. Give them this link.

When someone asks how Bernie plans to pay for everything he wants to implement or says electing Bernie means higher taxes:

Give them this.

When someone is disputing Bernie's stance on immigration/women/civil rights/LGBT/Veterans/elderly/poverty/children/mental health/incarceration/indigenous people/Foreign Aid:

Everything you need is in here.

When you just need a snappy photo at the right moment:

Go with this or this.

When someone cites the Wall Street article that says Bernie's proposals cost $18 Trillion: 

There's been a number of articles posted, so I will link them for you and you can pick from them.

No, Bernie Sanders is not going to bankrupt America to the tune of $18 trillion
An Open Letter to the Wall Street Journal on Its Bernie Sanders Hit Piece
Wall Street Journal’s Scary Bernie Sanders Price Tag Ignores Health Savings
 What ‘The Wall Street Journal’ Gets Totally Wrong About Bernie Sanders’s Agenda

UPDATE: Added source for Bernie's stance on guns.
UPDATE 7/22/15: Added source Bernie's stance on Israel-Palestine
UPDATE 7/24/15: Added another minimum wage link, economics, "rape essay," Venezuela, and white man as president
UPDATE 9/15/15: Added wall street article
UPDATE 10/14/15: Added minimum wage links