National Sales Tax Will Hurt Struggling Americans: Democratic Congressmen

Three freshmen congressmen introduce a House resolution A national sales tax is opposed by those who feel it will hurt the already financially struggling working Americans.

Reps. Eric Sorensen and Wiley Nickel (D.Ill.) made the announcement on March 8. They stated that they prefer a tax reduction to benefit the middle classes.

“A tax increase on gas, groceries and other essential items would be disastrous for Illinois seniors and working families, who already are struggling to make ends meet,” Sorenson stated.

Because people with lower incomes spend more on goods and services, sales taxes can be disproportionately affected.

“The Republican national sales tax proposal would be devastating for families as it increases the burden on lower-income folks while benefiting only the wealthy,” Pettersen.

“I hear from Coloradans nearly every day who are struggling just to get by, so the last thing we should do is pass policy to hurt them and further increase the wealth gap—especially when gas prices are high, inflation is still up, and health care costs are astronomical.”

If the tax was enacted, it would result in an increase of $3,500 on the average grocery bill each year, according to the resolution. Cars would cost $10,000 more, while homes would be $125,000 less.

“A 30 percent sales tax would be a disaster for working families and individuals in North Carolina who are already dealing with high gas prices, exorbitant housing costs, and rising costs of everyday goods and services,” Nickel.

Nickel stated that both sides should try to reach a fair tax cut for working families and increase taxes. “the ultra-wealthy and billion-dollar corporations.”

National sales tax proposals, also known as the Fair Tax or national sales taxes, have been supported by 25 Republican lawmakers. Fair Tax, which would eliminate income taxes, disband the IRS and impose an additional 23 percent sales tax. “the use or consumption in the United States of taxable property or services.” This rate could be increased in the future.

The idea is supported by tax experts who claim it will result in a more fair and simpler tax system.

Critics claim that since the Fair Tax is calculated at a percent of the cost for goods or services bought, tax will increase with each rise in price, even if wages stay the same.

Sorensen Nickel, Pettersen and Pettersen also condemn the Fair Tax.