30%

Another dangerous Republican proposal saw the light of day recently. The good news is that with the current Senate and President it has no chance of becoming a reality. The bad news is that this is the kind of thinking that if given the opportunity the Republicans will transform into a reality.


The proposal is a 30% across the board federal sales tax on all purchases. Your grocery bill last Friday was $100 when you hit the checkout; under this system it instantly became $130. On the way to the grocery store you filled up your gas tank and the pump said $40; under this proposal the new reading would be $52. Your mortgage payment is a cool $2,000 a month; next GOP month it would be $2,600. Oh, and that $350 a month car payment becomes $455. I could go on but you get the idea; simply multiple by 1.3.

Now, consistent with the GOP policy of giving the wealthy a very friendly tax system this proposal would fall hardest on the poor, working and middle classes who spent most or all of their income to get by/support their standard of living.

In exchange for these gigantic and overnight price increases the Republicans say they would eliminate the IRS and federal income tax. Let’s explore that for just a bit.

Eliminating the IRS, (or regardless of what you call it, an IRS like entity), is the stuff of fairy tales. Do you really think that if you take all the “cops off the block” everyone will simply willingly and completely comply? The IRS, or whatever you decide to call it, is also an accounting agency. Someone has to “count the beans”. So, we have established that whatever you call it an agency is needed to enforce the tax laws (whatever they may be) and account for the receipts. You may restructure (and not necessarily for the better) and rename the IRS but essentially it will still exist if the system is to work. If you must, call it a necessary evil.

Notice the Republicans are talking about eliminating the federal income tax. That is because it is one of our few progressive taxes; that means the higher your income the more you pay. Greedy wealthy people – who account for the bulk of GOP donor dollars – don’t like those kind of tax systems. Remember members of Congress are truly beholden to their donors (read: financiers) and the deep pocketed financiers are the lifeblood of most federal office holders and that is especially true of Republicans. Financiers, almost by definition, expect a return on investment. Mainly the Republicans view the masses as temporary useful idiots. Keep in mind their long-term goal is to eliminate free elections at which point the useful idiots are no longer necessary.

Use taxes like alcohol, tobacco and gasoline taxes remain unchanged. Buy a beer, a pack of cigarettes or fill up that gas tank and your tax liability remains unchanged. Most working class Americans at least occasionally enjoy an adult beverage. Many still smoke and almost all drive to work.

Off the top of my head, I can only think of three American cities with good public transportation systems. Rural America is totally devoid of good public transportation. The Republicans have rural Americans fooled into voting for them but certainly do not represent their interests.

This is an old idea repackaged. It will go nowhere in today’s political environment. It might get a floor vote and pass the House. (Doubtful but possible.) It would be dead on arrival in the Senate which probably wouldn’t even allow it to reach the floor. If somehow it was passed in the Senate President Biden is certain to veto it.

In the present I’m not worried about the 30% national sales tax becoming reality. It’s what could happen if we continue to elect radical and economically ignorant Republican in the future that I fear.

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One thought on “30%”

  1. As I have said for decades: wealth does not trickle down…it bubbles up…which is exactly the opposite of what these morons are proposing.

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