Democrats hammer House GOP over national sales tax proposal

[Yo_Mama_Been_Loggin]

Democrats are slamming a deal House Speaker Kevin McCarthy (R-CA) reportedly made with conservative hard-liners to vote on a bill that would eliminate the tax code and replace income taxes with a 30% national sales tax.

McCarthy agreed to give Rep. Buddy Carter's (R-GA) Fair Tax Act a first-ever floor vote as part of negotiations to become House speaker. The bill would abolish the IRS and eliminate national income, payroll, estate, and corporate taxes in exchange for a 30% national sales tax. Additionally, the legislation would send out “prebate” checks to help low-income families.

The idea to replace the IRS code with a sales tax was discussed on conservative radio in the '90s and continues to be floated today, but it has never received a vote in either chamber.

President Joe Biden attacked the proposal during a speech on Monday. “National sales tax, that’s a great idea. It would raise taxes on the middle class by taxing thousands of everyday items, from groceries to gas, while cutting taxes for the wealthiest Americans,” he said.

https://www.msn.com/en-us/news/politics/democrats-hammer-house-gop-over-national-sales-tax-proposal/ar-AA16uCJV

I apologize for using the Washington Examiner as a source but it seems it's only right wing media covering this story. The Examiner article was the least offensive.

[Just A Box Of Rain]

1. It is a gift.

[mobeau69]

2. BINGO

[Meadowoak]

4. No, it's not, do you realize how many poor people might think

This is a bargain? Not realizing they would be shooting themselves in the foot. If you've ever been around wealthy people you see how very little they buy.

[Just A Box Of Rain]

6. I'd say that would be none.

And raising taxes on "everything" is a losing proposition, especially with their base.

[GB_RN]

27. You Tell People They'll Pay 30% More For Groceries, Gas & Clothes...

See how pissed off they'll get, and how quickly.

[Meadowoak]

28. Fox will tell them they don't have to pay income tax anymore,

And will neglect to tell them about the 30% on everything they buy.

[UTUSN]

3. Well yes, Regression ain't our middle name.

[cilla4progress]

5. All about

the donors.

Have to move to a barter economy.

[patphil]

7. 30% huh?

Here is the estimated amount a $100,000 income pays in Federal Tax:

https://www.fool.com/taxes/2020/11/15/how-much-in-income-taxes-will-i-pay-if-make-100000/

This is 2020 data, but you can clearly see the Federal Tax bill is a whole lot less than 30%.

And from another angle, a tax calculator for 2022, assuming standard deductions on $100,000 have been factored in.

https://www.nerdwallet.com/taxes/tax-calculator

Again, we're talking a lot less than 30%.

For most of the lower and middle class, the tax burden would be much higher than it is now. This is a sucker deal, designed to put the burden of funding the Federal Government directly on the backs of the lower and middle classes.
The reason they want to do this is to make people more inclined to cut spending on social programming to perhaps allow the sales tax to be reduced in the future.
Once the shift has been made permanent, you can probably kiss the "prebate" concept goodbye.
Hello Suckers!

[world wide wally]

26. Math is not America's strong point...

Bullshit is

[dflprincess]

8. Doing away with the "payroll taxes"? As in FICA?

Just another way they're trying to defund Social Security & Medicare.

[MiniMe]

14. Ding ding ding

[FoxNewsSucks]

9. Defund social security and medicare, and eliminate estate taxes

Those are the two real goals. There are other things they use to distract, but never forget those are the targets.

[ThoughtCriminal]

10. Instant Recession

Quickest way to nuke consumer spending.

[Ray Bruns]

25. Yes. Let's kill a consumer economy by raising prices on everything.

Almost as good an idea as trickle down.

[doc03]

11. Low income people spend 100% of their

income on essentials. So they would be taxed 30%. Here is an idea put a small tax on every stock trade, It would promote long term investment instead of day trading.
Before online trades when you bought stock for say $1000 there was a sales fee of maybe $50 or so. Today you can trade stocks for next to nothing. A few dollars tax wouldn't affect the market in the least and it would bring in billions.
Another thing I have heard from MAGTs lately is privatize SS b.s..again.

[Igel]

12. It would fail.

It's a clay pigeon. Skeet. "Pull!"

[Iris]

13. And we think people are complaining about the price of eggs and gas now??

[dflprincess]

15. So you spend $30k on a new car

A 30% sales tax adds $9,000 to the price. That'd be great for the economy.

[DENVERPOPS]

16. The 30% is a bait and switch

The 30% figure is quoted to sucker people. The 30% on purchases would quickly become 40-50% or more. I have talked to common people who live in a country with the VAT tax........overall, not one person thinks it is a great idea........

The lower and middle classes would be hit hardest by this highly regressive tax.........And the top 1% would cry all the way to the bank.....

[bucolic_frolic]

17. Wealthy European countries with VAT have GREAT social services and support, we do not!

[bucolic_frolic]

21. Of course not, here all the VAT revenues would go to wealthy people

We would get food banks

[Elessar Zappa]

22. Exactly.

Plus most European countries also have income taxes on top of the VAT.

[LiberalFighter]

18. A couple of calculations

The average cost of a new car is about $50,000. A federal tax would be $15,000 along with $3,500 for Indiana sales tax. Making a total tax of $68,500 for a new car.

Average monthly grocery bill for two is about $550. They want to have a federal tax on groceries too. That will bump the cost another $165 or $715 monthly.

[KY_EnviroGuy]

19. I can just imagine all the exemptions they would dream up for businesses....

and likely zero tax on capitol gains.

We're now back in Two Santa Clause Land (again).......

[DallasNE]

23. What?

That would ravage the economy. Eliminate the payroll tax and you eliminate Social Security and Medicare. And think of what a 30% tax would do to insulin costs. Look at what that does to the cost of housing. Or, do they set up exemptions to the tax? That creates lobbying for your pet exemption. Talk about crazy, this is it.

[gratuitous]

24. It won't go anywhere . . . this time

But this nonsensical idea has been percolating since the 1990s - 30 years! Now they are getting a floor vote. They will lose, and lose badly, but if they get even 10 votes (I predict it will be more than 10), they'll regard this as an unqualified victory, and press ever forward.

These maniacs will massage the talking points, keep talking about a "fair" tax that just happens to fall heaviest on the most economically vulnerable, and paper over any analysis that shows how much better the overrich will fare under their proposal. Then they'll get another floor vote a few months or years from now, and maybe they get 50 votes. Still a gut-churning loss, but better than the last one! Onward!

[themaguffin]

29. Oh please please let them push their regressive tax LOUDLY