Remember Herman Cain’s ludicrous, ‘Nine-Nine-Nine’ flat tax plan? He’s gone; dead. That ‘no worse than the flu,’ COVID-19 removed him from this planet. But, his ‘legacy’ or a variation of his flat tax plan lives on; of course in an updated but still regressive manner.
Within a week of gaining control of the House of Representatives, “a dozen GOP lawmakers introduced a bill that would abolish the IRS altogether and replace the entire federal tax code with a national sales tax.” Instead of a catchy phrase we all had drilled into our head by the late Herman Cain, the Freedom Caucus’ plan would implement a flat, 30% sales tax on everything we purchase; although they claim it’s actually 23 percent but, McMath.
On Jan. 10, 2023, Georgia U.S. House Rep. Earl “Buddy” Carter, R-Ga., introduced House Resolution 25, also known as the “Fair Tax Act.” According to reporting by the National Review, consideration of this bill was a concession that newly elected House Speaker Kevin McCarthy made to the ultraconservative House Freedom Caucus to secure enough votes to be elected speaker.
The idea of a flat tax is nothing new and has been regurgitated and rebranded since it “was first introduced in Congress in 1999. It’s never had enough support to become law, but it puts forth an appealing message to those Americans who love to hate the federal tax agency.”
While every consumer would pay the same tax at the cash register, the bill provides for a monthly tax rebate payment, (almost like a guaranteed income of sorts) based on the poverty rate and family size. It’s meant to help offset the tax levy on low-income Americans who tend to spend a higher share of their paycheck on goods and services.
So, Who Benefits From a Flat Tax Plan and Who Does Not?
Certainly NOT the US economy. When scored, it’s expected the Congressional Budget Office and the Joint Committee on Taxation will report that it will increase the deficit by trillions of dollars every year, and increase taxes on the middle class. In other words, this ‘stellar’ plan will benefit the wealthy while lower income families and middle-class gets hosed….again.
- The Democratic Party-Leader Schumer offered this:
“As long as I am majority leader,” he said, “this devastating, unfair, nasty and almost crazy plan is not going to pass.”
- The White House
- Biden also hammered Republicans: “National sales tax, that’s a 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.”
- But…a few shockers:
- Qevin McQarthy—although this was part of his ‘soul selling’ to become Speaker in Name Only of the House of Crazies.
- Grover Norquist!
- You know the idea is rotten when Grover Norquist, the head of Americans for Tax Reform, blasted the move. He told Semafor: “This is a political gift to Biden and the Democrats.” Even Norquist knows that because the poor and middle class spend a much higher percentage of their income on necessities such as food and clothing, the impact would be devastating.