Brian Davis seems to be chasing his own tail when it comes to his statements about the national sales tax. A press release and fact sheet just in from the Walz campaign covers the basics:
The Facts on the 23% National Sales Tax Plan
Davis Calls it a “Good Idea;” 80% of Minnesotans Would Pay Higher Taxes
( Mankato , Minn. ) – With the economy in trouble and Minnesota ’s middle class families hurting, Dr. Brian Davis, the Republican Congressional candidate in Minnesota ’s First District, continues to say he thinks it’s “a good idea” to impose a new 23% federal sales tax on all goods and services.
This is despite the fact that tax experts, newspapers all across the country, and conservative Republicans like President Bush and former House Majority Leader Dick Armey agree that a new 23% sales tax would have a devastating impact on the middle class and could lead to a recession.
According to one study by the Institute on Taxation and Economic Policy, 80% of Minnesotans would pay more in taxes each year under the federal sales tax that Dr. Davis thinks is “a good idea.” The average tax increase on middle class Minnesotans under the plan would be nearly $3,000.
Additionally, supporters of a 23% federal sales tax also call for the elimination of the Internal Revenue Code, which would wipe out important tax credits and deductions like the Child Tax Credit, the Earned Income Tax Credit, and the mortgage interest tax deduction.
Equally troubling, imposing a new federal sales tax, which Dr. Davis thinks is “a good idea,” would force senior citizens to be taxed twice on their Social Security benefits. Seniors who earned their Social Security benefits by paying payroll taxes during their working years would be subject to a 23% sales tax on everything they buy with their Social Security payments. Davis has previously said he supports privatizing Social Security, a move that would put the retirement security of senior citizens at risk by gambling it on the stock market.
“It’s incredible that with our economy on the ropes, Dr. Davis thinks it’s ‘a good idea’ to put a new 23% sales tax on literally everything we buy,’ said Chris Schmitter, campaign manager for Tim Walz. “Tim Walz has a plan to cut taxes for middle-class families; Dr. Davis says it’s a ‘good idea’ to increase taxes on 80% of Minnesotans and privatize their Social Security.”
A fact sheet about the national sales tax [below].
Maybe Davis picked up his coyness about the national sales tax from his BFF Michele Bachmann. Lovely.
Update: KEYC-TV reports in Candidate Davis Proposes Flat Tax:
Republican Congressional Candidate Brian Davis is calling for a new, 23 percent national sales tax...Saying the tax would replace all other taxes and put money back into the wallets of residents who need it most. Davis' Fair Tax would end state and federal income taxes, which tax at a higher rate the more income a person makes. Something economics professor Dick Schiming disagrees with, Professor Dick Schiming says, "By taxing consumption, people will consume less. The upside is that they'll save and invest more. The downside is that everything we buy from a gallon of gas to a loaf of bread is going to have a twenty three percent sales tax on it, so everything we buy will cost more. "Today a group of concerned citizens who oppose the national sales tax met at the DFL District office to voice their concerns. James Carroll says, "Most people would not be able to afford this. Most people fall into the 15% income tax rate and adding a 23% sales tax instead doesn't make sense. "The residents say they are more concerned with tax cuts for the middle class.
Earlier this week, McPherson Hall at Minnesota Central looked at the consequences of the mortgage tax credit in MN-01 : Davis Endorsement – The End of Mortgage Tax Deduction. Did Davis talk about the national sales tax as a pokict possibility with the Fairmont Sentinel board? [end update]
The fact sheet sent by the Walz campaign:
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