McCarthy plans vote on national sales tax.

[RandySF]

Rep. Buddy Carter (R-GA) confirmed to Politico that Speaker Kevin McCarthy (R-CA) promised a floor vote on his proposed Fair Tax Act.

The bill abolishes the IRS and streamlines the tax code by replacing income taxes with a national consumption tax.

It was reportedly a key demand of the 20 holdouts McCarthy needed to win over to win the gavel.

That means that McCarthy is willing to make Republicans vote on instituting a new tax — a massive national sales tax. Nothing says “tax hike” better than taxing every single purchase you make.



https://politicalwire.com/2023/01/18/the-new-republican-tax/

[ColinC]

1. This is one of the stupidest things I have ever seen

Jesus

[SoCalDavidS]

5. Give It Time

Wait ‘til next week.

[Buckeyeblue]

21. Exactly...remember the Trump years

Each time we thought it couldn't get stranger, he'd go and prove us wrong.

[Caliman73]

37. As others have said...

It is likely going to be just, "the stupidest" thing that you have heard "recently". Republicans have not idea how to govern, and no desire to learn.

They think that their razor thin margin is some kind of mandate to enact their stupidest ideas. They think that they have more support than they actually have because they live inside the same bubble that their supporters do so all they hear are the most extreme ideas inside those bubbles.

Fortunately most, if not all of their stupid ideas will die in the Senate or get vetoed by President Biden.

[ColinC]

40. Yeah...

https://imgflip.com/i/77xf2x

[Caliman73]

43. Love that!

...So Far.

[honest.abe]

2. DOA

political stunt and waste of time.

[Travel Hat]

19. Absolutely. This would never pass the Senate.

Like you said, a political stunt.

[ZonkerHarris]

41. LET THE REPUBLICANS VOTE FOR IT! They will regret it in the next cycle

[multigraincracker]

3. Bet there will be a loop hole

for yachts
Just a guess.

[ColinC]

4. ...

[machoneman]

32. Loophole for trips to Cancun by one TX legislator. Guess who?

[newdayneeded]

6. Of course

Yachts, 100k+ vehicles., etc.

This is just another example how they can't stand people making 25k or less and not paying income tax. This policy would ensure the poor pay taxes.

I'll never forget this quote "Republicans believe every aliment that America has is because poor people have too much money"

[ZonkerHarris]

42. but it will be on baby formula and toilet paper for sure.

[Mr.Bill]

54. Taxing spending rather than earnings

greatly favors the wealthy.

[Scrivener7]

7. And nothing is more regressive than a tax that hits the rich and poor the same way.

[CTyankee]

16. I'm done trying to explain regressive taxes to repubks

Their eyes glaze over. They don't understand it. Or they won't.

[mobeau69]

46. Repubks? There are people right here on DU that try to argue for these schemes!

Elizabeth Warren’s wealth tax is the only viable alternative and the pukes won’t let that happen.

A fair, progressive income tax without loopholes and with strict enforcement is the only plausible system.

[CTyankee]

49. I'm so TIRED of explaining what a regressive tax is. They either don't wanna hear it or are stupid.

Or both. They believe in "trickle down" economics, that we are all wealthier when you don't tax the wealthy too much or the poor dears won't wanna innovate and create jobs. It's a cruel joke.

[DURHAM D]

8. Beyond stupid.

Keep talking Republican idiots. Get on tv as often as possible. Use in your tv ads.
Who is funding this stuff. Are they actually trying to destroy the Republican party.
Must be the Russians/NRA.



Go for it fools.

[ZonkerHarris]

44. Their base hears "abolish the IRS" but doesn't get 'Tax every purchase you make all year"

[FalloutShelter]

9. Guess who still gets off cheap if they have to pay a dollar

in tax on a gallon of milk?

One guess only.

Disproportionate harm to lower and missile class and, of course, has the extra benefit of ending contributions to SS and Medicare.
The better to kill it.

Show them what they've won, Vanna.

Not to worry though... Dark Brandon still has his trusty Veto pen.

[OAITW r.2.0]

10. Of course it won't go anywhere, but

it's going to expose these clowns as the financially clueless fools that they are. Can't wait to see the debates on this topic.

[Emile]

11. Another tax cut for the wealthy 🤑

[JohnSJ]

12. Of course. The tax that would hurt the most disadvantaged people possible. The republican way.

Fortunately, it won't go anywhere since we control the majority in the Senate and WH. It is just a dog and pony show.

Instead of abolishing the IRS, the republican party as it exists today should be abolished

[jcgoldie]

13. Of course they want a flat tax

So millionaires can pay no higher percentage than folks living in poverty. Same old republican shit.

[Disaffected]

14. I hesitate to say it here but

replacing the income tax with a sales tax is in principle a plan worth seriously considering.

The devil of course is in the details and the Repubs would likely not implement a fair and equitable tax rate schedule but that does not in itself negate the many inherent advantages.

[mobeau69]

18. JHC, the only advantage is for the rich.

I don't think you realize who a regressive tax hurts.

How many times do we have to have this discussion until the light bulb comes on?

[Disaffected]

34. There is no need for profanity.

Such a tax is NOT regressive if the sales tax levels are properly set. The key thing is it would not be the same rate on all items i.e.it might be zero on groceries and rent below a certain amount. It might be high on luxury goods etc. etc. There are many ways it could be configured to produce a fair and equitable system. Would it be perfect? No, but it would be a lot better for many reasons than the current income tax system that is rife with inequity and cheating.

Here's another thought to make you , the same principle would also apply to business taxes!

Try giving it a little thought before reacting - you will be much the better for it...

[maxsolomon]

39. Sales tax on RENT?

No thank you.

[Disaffected]

47. It could work by

setting a cut-in point of say $2,000 per month or whatever an equitable figure is deemed to be eg. 0% up to 2K/m, 5% on the next 8K, 10% on any above that (similar thing to the graduated income tax).

Same thing could apply to any manner of goods & services.

[mobeau69]

45. Retailers collect sales taxes. How would they determine one's percentage at a

Checkout?

[Disaffected]

48. By the type of good or service sold and

it's value (like they do now with existing sales taxes). Each type would have a fixed or graduated percentage applied to it. These percentages would be set by the gov't in a similar way to any other type of tax. The percentages would be calculated to provide the gov't with the level of tax income it requires in leu of income tax.

BTW, another poster mentioned here that some way would be required to take care of those low income folks who now pay no income tax. One way would be to simply provide a guaranteed annual payment to every individual to make up for the additional cost of goods & services imposed by the sales tax. The best method would probably be to simply pay the same amount to everyone regardless of income or wealth with maybe special consideration given to dependent kids.

BTW, IIRC, Robert Reich has proposed a similar tax scheme. It of course has pretty much zero chance of being implemented mainly due to the vast array of special interests who would be adversely affected eg. tax accounts & lawyers, their support staff, the gov't bureaucracy now required to administer the absurdly complex income tax system, and those who like to game or cheat the income tax system (the WPE (Worst President Ever) being a prime example).

[machoneman]

33. O.K. then, no sales taxes on anyone earning less than $350,000 a year. There, fixed it for you.

Oh, and those over $1,000,000 pay twice the tax rate. Yippee!

[Disaffected]

35. See above.

[TheBlackAdder]

15. Poorer people will have a higher tax burden, wealthier will see a massive tax cut.

.

This is the same shit that's been going on since the 1980s.

.

[Goodheart]

23. I disagree.

We could combine a national sales tax system with a uniform basic income payment. Problem solved.

[TheBlackAdder]

27. Established people, who already have everything or don't need capital purchases, won't pay as much.

.

Now you are setting up a full-fledged black market and barter system that is outside the norm.

This will really hit younger people, those starting over from divorce, significantly more than an apartment dweller who uses mass transit or walks to stores. There are a million ways to really game that to avoid federal taxes. State taxes are always lower so the risk to benefit ration is a lot less, but add in 25-35% and people will be looking for alternatives.

Adam Smith, besides the thing commonly referred to as the 'invisible hand of government' also stated that for a capitalistic society to flourish, there needs to be an aggressive and heavily tiered tax structure that affects the wealthy more. Of course, you'll never hear Republicans ever mention that.

The taxing hit is disproportional to the level of income. $5K in taxes is more of a hit to someone making $20K than $20K is to someone making $250K.

And what would that uniform basic income payment look like?

.

[nevergiveup]

17. This will absolutely destroy older folks

who live off their Social Security.

[Goodheart]

22. Wouldn't have to.

Under the Fair Tax system those same folks are given a guaranteed basic annual payment to cover the amount of sales taxes they spend for basic living expenses. Democrats could insist that those payments be quite substantial.

[LastDemocratInSC]

30. Wouldn't that mean the government is paying the taxes to itself?

[Goodheart]

20. Minority opinion here: I support replacing our income tax system with a Fair Tax system

as long as every transfer of value, including stocks, bonds, real estate, inheritances, artwork, jets, etc., is taxed.

For several reasons:

- our current income tax system makes the wealthy wealthier by partially subsidizing their lifestyles
- a fair tax plan that automatically reimburses a certain dollar amount to cover basic living expenses would not be "regressive". In fact, poor people would pay nothing more (net) than they're paying now, and many wealthy people and corporations who pay almost nothing now would suddenly pay a lot more.
- the massive, expensive bureaucracy that is the IRS will be greatly reduced. Tax compliance would be much, much easier and less expensive to enforce.
- The many lobbyists (bribers) who live inside the Beltway to affect our complicated tax code for the benefit of wealthy patrons would go out of business.
- changes to our tax rates would be much more visible to the public, and therefore much easier to oppose or support.
- as a management accountant by profession I personally witnessed that a large portion of my work was devoted to satisfying reporting demands by the IRS. Such work would disappear and would be a boon to economic productivity.
- filing tax returns every year under our current system is a giant pain in the ass.
- and more, but I'm getting tired of typing.

[Buckeyeblue]

24. Such a tax would ruin the economy

And it seems very complicated.

[kysrsoze]

25. This the one and only platform of the Republican Party - tax cuts and more income for wealthy

It's same inane ideas EVERY time they take power.

Everything else they do is showboating/triggering, etc., to ultimately serve their desire to feed the pigs at the top of the food chain. They have no other ideas, plans, etc. They don't care about justice/rights, healthcare, education, jobs, national security, national defense, etc. The only motivation they have is lining their pockets. I don't understand how their voters can't see that.

[GoodRaisin]

26. Waste of time and tax payer money.

DOA at Senate door.

[TheBlackAdder]

28. The next stupid thing is that sham called a FLAT TAX.

[usedtobedemgurl]

29. When I left Newfound, Canada, ...

I believe the sales tax was 18%. I looked it up and it is not 15%. When you are a tourist, if you buy a certain amount, you can fill out a form and you will receive the tax part in full.

[Whiskeytide]

31. It would depend on how it is implemented. If necessities ...

… (groceries, utilities, healthcare, rent, etc.) we’re exempt, and luxury items, stock sales and wealth transfers were NOT exempt, it could work. Add a progressive refund system for anyone making less than a modest income, and it could be progressive AND much simpler to collect and enforce.

In other words, if it eliminates income tax loopholes for the wealthy while still protecting low income earners, I could get behind it.

But of course, the Republican version will do none of that.

[Disaffected]

38. Yeah, that's the rub.

But they can do the same with the current system and keep a lot of it hidden or absurdly complex to thwart auditing and enforcement. At least with a national sales tax, it is easy to see what the various rates of tax are.

[Just A Box Of Rain]

36. It will make for great ads.

[NickB79]

50. You don't build $13 billion aircraft carriers with a tax on Snickers bars

Think about the trillions it currently costs in tax dollars to keep the US government funded. Now ask yourself: how much would we have to tax daily purchases to get to even half that amount?

We're not talking 1%, 5%, 7%. We're in the 200% range, if not more.

It's insanity.

[Goodheart]

51. Er, no.

[Renew Deal]

52. This is basically the scam being run in Florida and Texas.

And in the end people pay more.

[Sogo]

53. It's a massive tax CUT to the wealthiest Americans.

And a massive tax INCREASE to the rest.

It should come as no surprise to anyone that this is the GOP plan.

[wishstar]

55. Of course business owners are exempt from taxes on their purchases

while retail customers have no exemptions except on highest dollar items such as luxury boats and cars.

[Mr.Bill]

56. We can't even evaluate the current tax system

until we start enforcing it. That is job one, and President Biden has taken steps in that direction in the form of more funding for the IRS.