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Democrats hammer GOP plan to impose national sales tax, abolish IRS

Story by Amy B Wang • 8h ago

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Democrats are seizing on a Republican proposal to impose a national sales tax and abolish the Internal Revenue Service as a cudgel against the GOP, even though the bill has few fans even among Republican lawmakers.

The Fair Tax Act, sponsored by Rep. Earl L. “Buddy” Carter (R-Ga.) and introduced this month, would do away with income, payroll, estate and gift taxes, and instead impose a 23 percent national sales tax. It would also eliminate funding for the IRS after fiscal 2027.

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Carter told Fox Business on Tuesday that people would “much rather have a consumption tax” when given a choice.

“You would actually get to see … what you’re actually earning every week in your paycheck,” Rep. Andrew S. Clyde (R-Ga.), another supporter of the bill, said this month.

On Tuesday, House Speaker Kevin McCarthy (R-Calif.) appeared to respond to a question about whether he supported the Fair Tax Act by telling reporters, simply, “No.” Representatives for Carter and McCarthy did not respond to requests for comment Wednesday.

In an op-ed for the Atlantic this week, anti-tax conservative Grover Norquist criticized the reintroduction of the Fair Tax Act as “a free gift to Democrats” and warned the GOP against allowing a small minority of House Republicans to force a vote on it.

Norquist also expressed concern that such a national sales tax, and its accompanying monthly sales tax rebates for U.S. citizens, would essentially create a universal basic income.