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Mitch

Bernie Sander's Proposal: "Let's tax 0.5% on all stock transactions and use that to fund higher education."

Those of you who follow financial news and politics may have heard about Bernie Sanders, the junior United States Senator from Vermont. When he announced that he was going to run for president in April 2015, he also talked about many of his proposals and some of them may affect the way you live your life. Today, I'm going to talk about two of his proposals:

1. The Robin Hood Tax

2. Free College Education for all!

They may sound like fairy tales, but as we all know, radical changes often start with innocent little proposals that gradually gain public support. In fact, if everyone between the ages of 18 to 25 voted, there's a good chance he will win and these laws may even come into effect, considering that this age group is currently the most broke.

So what is the Robin Hood Tax? Contrary to public belief, it's not about discouraging people to save for their 401k or retirement accounts or anything like that, but rather, it's to tax Wall Street and stock traders who trade frequently. Any trade will incur a 0.5% tax so this is likely to affect day traders the most as well as companies listed on the exchange. People argue that this will affect the middle class the most, rather than the poor or wealthy, and that may be true, hence why it is unlikely to gain support or any traction any time soon.

Now, how does this relate to free college education for all? Well, let's look at countries that offer free higher education to their citizens. Germany. How do they do it? They have higher taxes and more trade schools that are funded this way. Similar to this, Bernie is proposing to raise taxes through the method we discussed in the above paragraph (the robin hood tax) and use that as a way to fund public colleges.

What are your thoughts on all of this? Feel free to share in the comments below.

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