Montana senator Jon Tester says he will defeat the GOP's 'awful plan' for a national sales tax

[Yo_Mama_Been_Loggin]

One of the first bills floated by the new House GOP majority aims to get rid of the income tax and swap in a national consumption tax instead. It's a proposal that's attracted ridicule from President Joe Biden, and is highly unlikely to ever move forward.

Senator Jon Tester, a Democrat from Montana, particularly wants to make sure it never happens.

"Montana has no sales tax and we don't need the federal government imposing one on us," Tester wrote in a Thursday tweet. "House Republicans' plan to tack a 30% national sales tax on every good from gas to groceries would skyrocket costs for Montana's working families. I will defeat this awful plan."

Under Georgia Rep. Buddy Carter's Fair Tax Act, the income tax, alongside the payroll tax and estate tax, would be replaced by a 23% consumption tax on gross payments — and the IRS would be abolished.

https://www.msn.com/en-us/money/taxes/montana-senator-jon-tester-says-he-will-defeat-the-gop-s-awful-plan-for-a-national-sales-tax/ar-AA16zl9A

I heard it was 30%. Either way it's a dumb idea.

https://democraticunderground.com/100217571579

[cilla4progress]

1. One of my favorite Senators.

The only voice of reason in their delegation, sadly.

While the culture laps up the inanity? of "Yellowstone."

[CrispyQ]

2. $8 eggs will cost over $10. A $50K car will cost $65K.

Certainly retailers aren't in favor of this BS?

[mopinko]

4. esp as it makes them the tax collectors.

[mopinko]

3. cuz everyone would just pony up that 30% w no prob.

nobody would find ways to skirt it. we can count on retail employees and small biz owners to collect that 30 every time.

there is an old pbs series- lovejoy. about a shady antique dealer who was always finding ways to skirt the vat.

[Cha]

5. TY & Sen Tester & all the

other Dems who will Defeat the Crazy Shit from the House.

[Meadowoak]

6. Not Manchin.

[Cha]

8. Good thing we have Sen Warnock

& VP Harris

[RainCaster]

7. That 23% was just bad math. It's really 30%

[dsc]

9. The difference in the percents comes from the base

It is 23% of the price with tax not without. So an item that costs $100 now will cost $130 because 23% of 130 is $30. Current sales tax is applied to the purchase price without the tax so a $100 item costs $108 in a state with 8% sales tax.

[roamer65]

10. We would have a HUGE black market.

The national pastime would become NST avoidance.

[Disaffected]

15. That would be an issue alright.

But, another national pastime is avoiding income tax so the two balance out to some extent. I dunno but I'm guessing catching sales tax cheats would be easier in a lot of respects than catching income tax cheats, particularly involving those in high income brackets.

Anyhow, sales taxes are not new so procedures already exist for catching cheating. IIRC, the VAT in Europe is pretty high compared to most sales taxes so I imagine they have ways to deal with it.

In any case, imposing a flat tax of 30% or whatever on pretty much everything is nutso from the outset. A much better way would be to have different tax levels on different types of goods & services and, value levels before the tax cuts in. You would also need a kind of guaranteed income on the individual level to compensate folks who pay little or no income tax now because they have little income.

[Buckeyeblue]

11. 30% is crazy...

As I've stated before, such a plan would wreck the economy.

[In It to Win It]

12. They could have passed this when they had the WH and Congress

I'm sure people would love a 30% sales tax.

[iemanja]

13. This is to make sure the poor pay a greater percentage of their income than the rich

Naturally the GOP wants it. The Dems need to hit them hard with ads about Republicans' increasing taxes.

[bpj62]

14. State sales tax

In addition to paying the 30% national sales tax you would still be paying whatever state sales tax that you may have. States like Florida, Montana and Delaware get thier revenue from user fees and liquor and gas tax. You will see a rise in those state taxes and fees because there is no guarantee that the 30% national sales tax will trickle down to state projects that currently get federal funding.

[patphil]

16. Consumption based taxes are never fair.

Lower and middle class people spend the overwhelming majority of their income to pay daily expenses. Their federal tax bill is significantly less than 20%. This is effectively a huge tax increase for them.
On the other hand, the rich only spend a small part of their income for the same kinds of things. Much of their income goes into investments, savings, or actually leaves the country. They will see a significant tax decrease from a sales tax based system.
Of course this is exactly what the Republicans want, since they are rewarded so very well by their rich donors whenever they pass a big tax break for them.
Just simplify and enforce the current system.