Three Democrats in the US House of Representatives introduced a measure to oppose a controversial Republican tax proposal that would abolish the IRS, eliminate income taxes and introduce a national sales tax.
Republicans tabled in House of Representatives Fair tax law In January, shortly after California President Kevin McCarthy was elected speaker. The legislation proposes to reform America’s tax system by eliminating the income tax in favor of a 23% to 30% tax on gross payments on taxable assets.
Democratic Representatives Willie Nickel of North Carolina, Eric Sorensen of Illinois and Brittany Petersen of Colorado called the measure “extreme”.
“I was dismayed to hear of an extreme plan by my colleagues across the aisle to introduce a 30% national sales tax for working families,” Nickel said at a news conference on Wednesday. “A 30% sales tax would be a disaster for working families and individuals in North Carolina and across the country who are already grappling with soaring gas prices, skyrocketing housing costs, and rising costs for basic goods and services.”
The three Democrats provided a house decision Against a national sales tax for working families and instead for a tax cut in favor of middle-class families. Nickel said their efforts build on the work of Sens. John Tester, D-Mont, and Jackie Rosen, D-Nev.
Tester and Rosen introduced the supplementary senate accuracy in February
“We’re in the heart of the country,” Sorenson said, “we see two things that define how hard it is to live.” “It’s the price of a gallon of milk, which was about $5 a gallon. And also the cost of eggs. It’s the cost of gas. We need to lower that cost to Americans every day.”
“The last thing anyone needs now that we’re struggling to make ends meet is higher taxes,” he added.
Congress decisions are not binding laws. They are instead used to highlight an important issue in Congress and indicate the direction lawmakers intend to take when forced to vote on it.
Negotiations between McCarthy and members of the Conservative House Liberty Caucus during McCarthy’s protracted bid for speaker loudly cemented a full House vote on the Fair Tax Act Fox News. But McCarthy has yet to bring the bill up for debate.
“The idea that Republicans could even consider such a ruling when their constituents are asking for help is outrageous,” Petersen said. Not only will this law have a negative impact on the people of Colorado and across the country, it will completely destroy the IRS.”
The bill is effectively abolished Sixteenth Amendment the United States Constitution, which gives Congress the power to set and collect income taxes. It will also cause the IRS to cancel and impose a $1 tax 30% off any $100 purchaseAccording to the nonpartisan Center for American Progress.
If approved, the tax policy will come into force in 2025.
Republican lawmakers argued That a national sales tax on goods and services “bought for ultimate use” will increase savings and investment, spur economic growth, raise living standards, and respect taxpayers’ right to privacy compared to traditional federal income, payrolls, estates, and gifts Taxes, depending on the language of the invoice.
Rep. Paddy Carter, RN, who introduced the Fair Taxes Act, said it would simplify the tax code.
“Rather than adding 87,000 new agents to arm the IRS against small business owners and Central Americans, this bill would completely eliminate the need for oaths by streamlining the tax code with provisions that work for the American people and encourage growth and innovation,” Carter said . He said in the current situation. Armed and unelected bureaucrats shouldn’t have more power over your paycheck than you do.
The law will reduce federal spending by more than $71 billion in 2023, according to A a report It was released by the Congressional Budget Office on Monday. But it’s also estimated to reduce tax revenue by more than $185 billion over the next decade.
According to the Central Bank of Oman, the Republican Party’s tax proposal would add $114 billion to the deficit over the period.
The bill would also undermine several tax provisions introduced by President Joe Biden as part of the Inflation Control Act, including more employees for the IRS and a 15% corporate tax imposed on companies earning more than $1 billion annually. in January opinionVice President Kamala Harris said the Republican Party is “rushing to reverse this advance and allow so many millionaires and billionaires and corporations to cheat the system.”
Petersen said the sales tax will hurt those most who cannot save, such as the elderly and low-income families.
“If you look at a consumer-oriented tax code, it’s the people who actually can’t save that are paying disproportionate levels of taxes, plus a lower level of taxes that has a big impact on Social Security and Medicare,” he said.
