John,
There’s no denying it. Extremists have taken over the House Republican conference.
We’ve learned that among other concessions Kevin McCarthy made in exchange for the Speaker’s gavel, he’s agreed to hold a vote on a bill that would abolish the IRS and abolish the entire federal tax code, from income taxes to the payroll taxes that fund Social Security and Medicare, to estate and gift taxes only paid by the very wealthy.[1]
How will the federal government afford anything―from natural disaster responses to healthcare to nutrition assistance―with none of these taxes? The answer is, a new national sales tax of at least 30%, which would require everyone, no matter how poor or rich, to pay the same tax rate. However, according to the Institute on Taxation and Economic Policy (ITEP), it would require a national sales tax of at least 60% to make up for the lost revenue.[2]
Furthermore, this GOP-tax on everything we buy—groceries, cars, homes, healthcare―would disproportionately impact middle-class and low-income people and families. Another ITEP study shows that the top 1% pays just a 0.9% average share of their income in state sales taxes compared to a 7.1% share for the lowest-income households.[3] So, this new Republican bill would shift who pays taxes by A LOT.
Donate today to fight back against House Republican plans to abolish taxes on the wealthy while making middle- and working-class households shoulder the cost of virtually all federal programs.
Republicans profess to be the party of fiscal responsibility, but according to their legislative agenda they’re really the party that puts the wants of their wealthy and corporate donors ahead of the needs of the American people.
Help fight back against the House Republican agenda that seeks to slash taxes paid by the wealthy and increase taxes paid by working- and low-income families. Donate today!
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Together, we’re fighting back against policies devised by anti-tax extremists and fighting for policies that lower costs for working families.
Frank Clemente
Executive Director
Americans for Tax Fairness Action Fund
[1] House Republicans to vote on bill abolishing IRS, eliminating income tax, Fox News, Jan. 10, 2023
[2] “’Fair Tax’ Plan Would Abolish the IRS and Shift Federal Taxes from the Wealthy to the Rest of Us,” Institute on Taxation and Economic Policy, Jan. 11, 2023
[3] “Who Pays? 6th Edition,” Institute on Taxation and Economic Policy
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