"Conservative" Hardliners Pushing for 30% Sales Tax
The holdouts who forced Kevin McCarthy to negotiate demanded a vote on the socialist "FairTax" that would institute a nationwide sales tax.
As part of the negotiations that made Kevin McCarthy Speaker of the House of Representatives, he had to agree to a vote on the FairTax proposal.
Now, the FairTax won’t go anywhere. But it is indicative of how the “conservative” “heroes” who stood against McCarthy…..aren’t.
There are two key parts of the FairTax proposal. The first component would eliminate all federal taxes in the United States inclusive of income, capital gains, payroll, estate and more and replace them with a consumption tax.
Now the replacement of all income-related taxes with a consumption tax is something that reasonable people can discuss. There are serious arguments that can be made for an against the idea of replacing the income tax with a consumption tax.
Where the “FairTax” goes off the rails, however, is the “prebate” scheme. FairTax proponents describe the prebate like this:
The FairTax provides a progressive program called a prebate. This gives every legal resident household an “advance refund” at the beginning of each month so that purchases made up to the poverty level are tax-free. The prebate prevents an unfair burden on low-income families.
Yes, the “conservative” proponents of the FairTax want to institute a Universal Welfare scheme that would still require the heads of households to submit their personal information to the federal government once a year, much like you currently do when submitting your income taxes.
There’s also a Scientology connection, because why not.
So why did McCarthy agree to this fakakta scheme? As Jim Swift writes:
On paper, the bill sounds like a messaging win for Republicans: Abolish the IRS using this one neat trick! You never lose with the base by bashing the IRS. But the political reality is more complicated—as is the math.
But the scheme is of course more complicated than that, because now these “conservatives” in Congress want to create a massive visual tax increase, drive up the cost of goods, create a new entitlement, AND create a massive new government bureaucracy to both collect the taxes and send out the “prebates”.
It’s not a “conservative” FairTax. It’s Republicans promoting socialism.
Democrats of course love their political luck and the likelihood of the bill going anywhere is low as Semafor reports.
But what this really shows is that the “conservative heroes” who were holding the line against McCarthy aren’t conservative at all. They are merely trolls who are seeking power and influence all while appeasing their ever-diminishing social media fan bases.
Just remember: anybody pushing this “FairTax” isn’t a conservative, just merely somebody trying to sneak socialism under the conservative tent.