Wendy Sherman: “I rise to address a bill by the gentleman from Georgia (Mr. Linder). It is co-sponsored by the majority leader, a bill…”

“I rise to address a bill by the gentleman from Georgia (Mr. Linder). It is co-sponsored by the majority leader, a bill which the President has indicated he looks upon favorably. It is to abolish the income tax and impose a '23 percent sales tax on all Americans.' First, I headed the largest sales tax agency in the world for 6 years, and I am going to tell you, you cannot administer a 23 percent sales tax. That is why Europe uses a value added tax. Second, a 23 percent tax would not replace the revenue. It would leave our troops in the field without the supplies they need. Third, imagine a billionaire decides to travel to luxury resorts in France for an entire year. His property is protected by the American Army, his person is protected, he enjoys all the joys of being an American citizen and pays absolutely zero in tax. Now imagine a retired couple. They have paid tax on all the money they have made. They squirreled it away. They have invested in municipal bonds. This thing passes. The muni bonds drop in value. They are receiving this income, and they are paying 23 percent on their food, 23 percent on their health care, 23 percent on their pharmaceuticals. They can no longer afford food, so they are buying dog food, and they are paying 23 percent on that. This is an outrageous bill.”