Democrats hammer Republican plan to impose national sales tax and abolish IRS

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Democrats seize on a Republican proposal to impose a national sales tax and abolish the Internal Revenue Service as a stick against the GOP, even though the bill has few fans, even among Republican lawmakers.

The Fair Tax Act, sponsored by Rep. Earl L. “Buddy” Carter (R-Ga.) and introduced this month, would eliminate income, payroll, estate and gift taxes, and impose on the places a 23% national sales tax. It would also eliminate IRS funding after fiscal year 2027.

Carter says Fox Business Tuesday that people would “much prefer to have a consumption tax” when given the choice.

“You would actually see … what you actually earn each week on your paycheck,” Rep. Andrew S. Clyde (R-Ga.), another supporter of the bill, said this month.

On Tuesday, House Speaker Kevin McCarthy (R-Calif.) seemed to respond to a question of whether he supported the Fair Tax Act by telling reporters, simply, “No”. Representatives for Carter and McCarthy did not respond to requests for comment Wednesday.

In an op-ed for the Atlantic this week, anti-tax conservative Grover Norquist slammed the reintroduction of the Fair Tax Act as “a freebie to Democrats” and warned the GOP against allowing a small minority of House Republicans to force a vote on it.

Norquist also expressed concern that such a national sales tax, and the accompanying monthly sales tax rebates for U.S. citizens, would essentially create a universal basic income.

“The advertisements you can run are that so and so wants to add 30% sales tax on top of [prices], which will be devastating for middle-income people. It’s a pretty crude announcement,” Norquist told The Hill.

Those ads have indeed begun, in the form of attack lines from Democrats and the White House. At a joint press conference Wednesday, Senate Majority Leader Charles E. Schumer (DN.Y.) and House Minority Leader Hakeem Jeffries (DN.Y.) blasted the Fair Tax Act , saying it would result in dramatic tax hikes for nearly all Americans. , create a particular burden for seniors and “blow up” Social Security.

“The so-called ‘Fair Tax Act’ is unjust, unacceptable and un-American. It will impose a dramatic tax hike on 90% of Americans, working families, middle class people, seniors and those who aspire to be part of the middle class, the poor, the sick and the afflicted. said Schumer. said.

Jeffries pointed out that older Americans who had already contributed to the system throughout their lives with income taxes would be “double and triple taxed” by a national sales tax.

This legislation is extreme, and it is functionally the GOP tax scam, part two,” Jeffries said. “We’re going to expose him and…do everything we can to stop him.”

Schumer said such a “doozy” of a plan would never make it through the Senate as long as he was the House Majority Leader. He also defended the ardent and early warnings from Democrats – even if the bill is almost certain to die – saying there remained a possibility that the plan could gain traction in the GOP with the support of extreme Republicans. right.

“Everyone thought Chief McCarthy would never accept MAGA Republicans when he ran for president,” Schumer said, referring to concessions McCarthy made to hard-righters in his run for president. presidency. “I don’t underestimate the power over McCarthy of those extreme MAGA Republicans. We must fight this plan now before it picks up speed. Too many Republicans support him.

President Biden is expected to make the proposal a major issue in a speech on the economy Thursday in Virginia. The White House has previously regularly attacked Republicans for suggesting changes to Medicare and Social Security, trying to portray the GOP as out of touch with average Americans.

“These guys, they’re fiscally insane,” Biden said of Republicans during remarks at a Martin Luther King Jr. Day event last week.

Scattered support for the Fair Tax Act among Republicans recalls tensions within the Senate GOP last year, after Sen. Rick Scott (R-Fla.) released an “11-point plan to save America which included a proposal for all Americans to pay some form of income tax, and after Sen. Ron Johnson (R-Wis.) suggested that Social Security and Medicare be eliminated as programs federal fees and instead be turned into programs approved by Congress on an annual basis as discretionary spending.

Both proposals drew criticism from several prominent Republicans, including Senate Minority Leader Mitch McConnell (R-Ky.), who told reporters adamantly that the GOP “will not have as part of our program a bill that raises taxes for half the American people and sunsets.” Social security and health insurance within five years.

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