Paying for the Plan

It is important not only to create a policy platform with innovative reforms, but to try to figure out how much it will cost! With the Wall Street trading taxes, refining the federal income tax brackets, introducing a means tested universal basic income, and new programs, we have calculated below how much we estimate the Peoples’ Union plan will cost. As an economic framework, we support the Keynesian view of economics which targets tax cuts to the average American and stimulate spending in times of recession. We reject “trickle down” economics (cutting taxes at the top and letting the benefits trickle down in terms of jobs for all) because it just hasn’t worked for the average American over the last 45 years.

Keynesian Economics

President Roosevelt was influenced by the ideas of Economist John Maynard Keynes’ who believed government intervention is needed to stimulate the economy and increase individual, and therefore societal, economic security. Without some constraints, a runaway capitalist society becomes an oligarchy ruled by the rich. Our tax reform proposals will make the policies essential to fulfilling the second bill of rights possible. We support the Keynesian version of economic prosperity in which tax cuts for average Americans stimulate growth and national prosperity.

“You have heard all about the dangers which the business of America is supposed to be facing if this Administration continues.
The answer to that is the record of what we have done. It was this Administration which saved the system of private profit and free enterprise after it had been dragged to the brink of ruin by these same leaders who now try to scare you.” (President Roosevelt, 2033)

Source: AZ Quotes

Jon Stewart once remarked, “you’re told that we live in a free-market capitalist society. And everything that I see tells me, we are not. If you give corporations access to the money hose, that’s stimulus. But if you give people access to the money hose, that’s socialism.” (Goodreads)

Our Federal Budget Plan

In pursuit of every American’s right to economic security, it is essential to strike a delicate balance between reform and inadvertently stifling consumerism and production. The Peoples’ Union recognizes the importance of maintaining a thriving economy. We support a thorough evaluation of revenue streams and economic indicators to ensure that tax reforms support both the funding of economic rights and overall economic growth. We firmly reject crony capitalism and socialized capitalism, which perpetuate a system where profits are privatized while losses are socialized. It is time for a change.

The Peoples’ Union proposes paying for the second bill of rights by implementing the following budgetary and financial reforms:

  • A more progressive federal income tax for top earners
  • Taxes on stock and bond trading
  • Closing tax loopholes benefitting the wealthy & corporations
  • Universal healthcare program that integrates existing programs (i.e., Medicaid, Medicare, the VA, etc.) and reduces administrative costs
  • Directly negotiate drug prices with pharmaceutical companies
  • Directly negotiating durable medical equipment (DME) prices with DME companies
  • Directly negotiating medical device prices with medical device manufacturers
  • Impose vice taxes on tobacco, alcohol, and sugary drinks
  • Restore 35% corporate flat tax
  • Surplus revenues from de-profitization of energy companies
  • Surplus revenues from de-profitization of major insurance industries
  • Surplus revenues from de-profitization of big pharma., medical device and durable medical equipment providers

The following is an overview of specific costs the People’s Plan will incur:

New Costs

  • Universal Basic Income ($18,000 per year for those below poverty line) = (-$684 billion)
  • Free public higher education = (-$75 billion) (Georgetown University)
  • Eliminate taxes on social security and SSDI for households that only have income from those sources. We support legislation like “You Earned It, You Keep It bill” Rep. Craig from Minnesota. Amount saved is 8.9 trillion over 75 years (You Earned It, You Keep It Act)
  • Marshall Plan for Central America (Northern Triangle) = (-$12 billion) (Center for Immigration Studies)
  • Universal healthcare = (-$3.2 trillion) (Katz et al., 2019)
  • Eliminating taxes on Americans’ that do not live in the USA
  • Eliminating exit taxes on Americans’ looking to denounce their citizenship

The following are savings and new revenues that will help pay for universal healthcare, universal basic income, and other proposed programs in the People’s Union platform:

Savings (Per Year)

New Revenue (Per Year)

Curbing Runaway Healthcare and Income Security Costs

With income security programs and healthcare spending continuing an upward trajectory, it is evident that a change is needed to protect the solvency of these programs and ensure that young people receive the benefits they have paid for during their working years. Thorough analyses are needed to examine whether a universal basic income would save the taxpayers money in the long run, if it were to replace the patchwork of social safety net programs we currently have. Our proposals to non-profitize the healthcare system also promises to reduce healthcare costs over the long term.

Source: Chart created by TPU. Data obtained from The White House, Historical Tables, Table 5.1 -Budget Authority by Function
Source: Graph created by TPU. Data obtained from The White House, Historical Tables, Table 4.1—Outlays by Agency: 1962–2029