Republicans Proposal That Would Increase Sales Tax to 30% Gains Steam

Twitter is losing its collective mind this week over a House Republican proposal that seems to be quickly gaining traction in recent days.

The Fair Tax Act, if passed, is currently supported by 31 Republicans and “would institute a massive 30 percent sales tax on all purchases in exchange for doing away with income, Social Security and Medicare taxes,” according to The Hill.

It would effectively end year-end tax bills for Americans as well as eliminate all payroll deductions for workers – deductions that decrease the amount of take-home pay. As a consequence, however, the Fair Tax Act would impose a 30% sales tax on all purchases, meaning everything from a carton of eggs to a new vehicle would increase massively in price.

House Republicans maintain that this is the fairest way for the United States tax system to operate, while Democrats argue that this puts unnecessary pressure on middle and lower-class families who live paycheck-to-paycheck.

Twitter Is Torn About Tax Hike

Twitter user lpackard argues that this would equate to a “massive tax hike” for most Americans, while the rich stand to benefit:

Not all users across social media are soured on this plan. This particular user highlights the benefits of the Fair Tax Act alongside a meme with the message “More Money Less Stress.”

The hashtag #RepublicanTaxHeist has been trending because of this proposal, and this user believes that Republicans have only one goal in mind: keep taxes low for the rich.

Critics Call to ‘Abolish The IRS'

This Twitter account backs the proposal, emphatically writing “SIGN US UP!” in regards to the elimination of income tax and the abolishment of the IRS as we know it:

User JonBowzerBauman maintains that every “flat” tax proposal would only benefit the wealthy, and the Fair Tax Act is no exception:

Still, some users are delighted over the fact that income tax would cease to exist, despite the proposal's drawbacks:

User RioTazewell thinks this is all a ploy to offset “billions of dollars in government handouts” that are usually reserved for corporations and the upper class:

ABlackPolitical seems to imply that the bill's abolishment of payroll taxes would lead to the elimination of Social Security and Medicare:

This article was produced and syndicated by Wealth of Geeks.