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CNBC: POLITICS House Democrats push back against GOP bill to abolish IRS, impose national sales tax

House Democrats push back against GOP bill to abolish IRS, impose national sales tax

Three Democrats in the U.S. House introduced a measure to push back against a controversial Republican tax proposal that would abolish the IRS, eliminate income taxes and impose a national sales tax.


House Republicans introduced the Fair Tax Act in January shortly after Kevin McCarthy, R-Calif, was voted in as speaker. The legislation proposes to overhaul the U.S. tax system by eliminating the income tax in favor of a 23% to 30% tax on gross payments for taxable property.


Democratic Reps. Wiley Nickel of North Carolina, Eric Sorensen of Illinois and Brittany Pettersen of Colorado called the measure “extremist.”


“I was dismayed to hear about an extremist plan by my colleagues on the other side of the aisle that calls for a 30% national sales tax for working families,” Nickel said at a press conference Wednesday. “A 30% sales tax would be a disaster for working families and individuals in North Carolina and around the country who are already dealing with high gas prices, exorbitant housing costs and the rising costs of goods and everyday services.”


The three Democrats introduced a House resolution opposing a national sales tax on working families and, instead, supporting a tax cut to benefit middle-class families. Their efforts build off the work of Sens. Jon Tester, D-Mont., and Jacky Rosen, D-Nev., Nickel said.