http://www.usatoday.com/usatonline/20040813/6450720s.htmKerry slams president over national sales tax Says Bush has 'no new ideas' for economy
By Martin Kasindorf
USA TODAY CARSON, Calif. -- Democratic presidential candidate John Kerry attacked President Bush on Thursday for saying a proposal to abolish the federal income tax and replace it with a national sales tax is worth considering. The Bush administration already had disavowed the idea soon after the president promoted it.
''I'm not exactly sure how big the national sales tax is going to have to be (23% with no leakage - 33% with expected leakage, per NPR), but it's kind of an interesting idea that we ought to explore seriously,'' Bush said Tuesday at a Florida campaign event, answering a question from the audience.
After Bush's comments stirred reporters' demands for details, administration officials denied Wednesday that Bush is considering such a tax.
As Kerry emphasized his own tax proposals here at California State University-Dominguez Hills, the White House's shifting positions gave the Democrat an opening to ridicule Bush on two points the Republican campaign regards as strengths: Bush's tax-cutting record and his reputation for straight talk.
Proposals for a national sales tax have gained little ground in Congress. Critics say that such a tax would unfairly fall more heavily on lower-income families who spend a larger proportion of their incomes on taxable goods than the wealthy do.
Kerry said a national sales tax would amount to ''one of the largest tax increases on the middle class in American history.'' To produce the same revenue for the government as the income tax, Kerry said, a national sales tax would have to be ''at least a 26% add-on'' to the state and local sales taxes Americans now pay. These taxes average 6.2%.<snip>