What's the new Republican "FAIR" TAX? Or is it really the Billionaire (WEL)FAIR TAX? Follow the money!
"The Fair Tax Act would institute a massive 30 percent sales tax on all purchases in exchange for doing away with income, Social Security and Medicare taxes.
The plan would increase the tax burden on the middle class. Having a sales tax as the only source of public revenue would put a higher tax burden on people making less money. That’s because those with lower incomes tend to spend more of what they make while richer people tend to save more of their incomes, investing in retirement accounts, securities and other types of assets." - The Hill
Who is pushing this new Republican scheme? Who benefits? Who gets hurt? Follow the money with this PowerMap to understand the Republican (WEL)FAIR TAX. (Images credit The Simpsons by Matt Groenig).
Republican (WEL)FAIR TAX
The Fair Tax Act
"The Fair Tax Act introduced by Rep. Buddy Carter (R-Ga.) and supported by 30 other Republicans would institute a massive 30 percent sales tax on all purchases in exchange for doing away with income, Social Security and Medicare taxes. That means workers would get to keep the entirety of their paychecks without having to pay out anything to the government. But it also means that buying everything from groceries to automobiles would be hugely more expensive. Critics of the proposal say it’s impractical and unfairly benefits the rich..." - The Hill
Who is pushing this bill?
"Several of the most prominent 2024 names on the Republican side have supported Fair Tax bills at the state and national level and enthusiastically praised the idea along the way.
- Ron DeSantis. Florida Governor Ron DeSantis, a founding member of the House Freedom Caucus, repeatedly sponsored a Fair Tax bill while in Congress. The legislation came up at times in Democratic attacks during his first run for governor.
- Nikki Haley. Said he would “support the Fair Tax and any reform that would eliminate income tax” in South Carolina as governor.
- Mike Pence. A vocal proponent of a Fair Tax in his House days, and bragged that he was willing to take the political heat that came with his support.
- Mike Pompeo. Former Secretary of State Mike Pompeo said during his 2010 run for Congress that he “would certainly support the Fair Tax” paired with a Constitutional Amendment abolishing income tax, although he would look at any “low tax” proposals as well." - Semafor
What Republicans say about Social Security
"Sen. Rick Scott (R-Fla.) 11-point plan calls for all federal legislation to sunset after five years as part of an effort to curb government spending. “All federal legislation sunsets in 5 years. If a law is worth keeping, Congress can pass it again,” the document said. This would require Congress to renew Social Security and Medicare every five years.
Mike Pence suggested that the U.S. government allow young Americans to put part of their Social Security withholdings into a private savings account overseen by the government...
Sen. Mike Lee (R-Utah) has called for the complete elimination of Social Security. “It will be my objective to phase out Social Security, to pull it up by the roots and get rid of it,” Lee said at a campaign event in 2010, adding, “There’s going to be growing pains associated with doing this. We can’t do it all at once.”
Sen. Ron Johnson (R-Wis.) has suggested that Congress regularly renew the entitlement programs. However, Johnson has proposed that it be done on an annual basis. “I’ve been saying for as long as I’ve been here that we should transfer everything, put everything on budget so we have to consider it if every year. I’ve said that consistently, it’s nothing new,” Johnson told “The Regular Joe Show” podcast" - The Hill
TakeAway: Don't fall for this Republican scheme that would destroy retirement for millions of Americans.
DISCLAIMER: ALTHOUGH THE DATA FOUND IN THIS BLOG AND INFOGRAPHIC HAS BEEN PRODUCED AND PROCESSED FROM SOURCES BELIEVED TO BE RELIABLE, NO WARRANTY EXPRESSED OR IMPLIED CAN BE MADE REGARDING THE ACCURACY, COMPLETENESS, LEGALITY OR RELIABILITY OF ANY SUCH INFORMATION. THIS DISCLAIMER APPLIES TO ANY USES OF THE INFORMATION WHETHER ISOLATED OR AGGREGATE USES THEREOF.