As part of his deal to become House speaker, Kevin McCarthy reportedly promised his party’s conservative hardliners a vote on legislation that would scrap the entire American tax code and replace it with a jumbo-sized national sales tax.
The assurance got relatively little attention at the time, drowned out by the many other concessions McCarthy made to win his gavel. But with Democrats already attacking the proposal, some conservatives see it as a political headache in the making…
The idea of a “fair tax” that would replace our current IRS code with a single sales tax was popularized on conservative talk radio in the late 1990s. It has kicked around Washington ever since, popping up in the occasional presidential platform, but never received a vote.
Its current champion in Congress is Georgia Rep. Earl “Buddy” Carter, whose Fair Tax Act would swap out the income, payroll, estate, and corporate levies for a 30% national sales tax. It would also send out “prebate” checks to soften the blow on lower income families, all while abolishing the Internal Revenue Service.
And as we all know, that is a very regressive tax that will clobber lower-income people the hardest.
UPDATE 1: Grover ‘Drown The Government In A Bathtub’ Norquist:
This is a political gift to Biden and the Democrats. I think that this is the first significant problem created for the Republican Party by the 20 people who thought that there was no downside to the approach they took.
UPDATE 2: President Handsome Joe Biden —
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.
And if I’m not mistaken, what they’ve introduced — it also would totally eliminate the IRS. It feels good, except all going to be sales tax. Go home and tell your moms. They’re going to be really excited about that.