National Sales Tax

Floor Speech

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Mr. SCHUMER. Mr. President, on the Republican national sales tax, the House Republicans keep churning this stuff out. It is unbelievable. In the 118th Congress, it is already a tale of two parties: Democrats united on one side, Republicans in chaos on the other.

While Democrats are laser-focused on making life better for everyday families, Republicans are making it clear they want to help the very, very wealthy--the ultrarich. While Democrats want to embrace collaboration and bipartisanship wherever possible, Republicans seem to be trapped by MAGA extremism. That is the contrast in a nutshell: Democratic unity versus Republican chaos, Democratic unity versus Republican chaos.

Yesterday, I joined with President Biden, the Vice President, Leader Jeffries, and Democratic colleagues from both Chambers to talk about how we Democrats can maintain our unity and turn it into action in order to help the American people.

Later today, I will join with Leader Jeffries to further highlight the contrast between Democrats' ``people first'' agenda and Republicans' radical plans--radical plans--for a national sales tax.

Multiple extreme-right Republicans say that Speaker McCarthy has promised them a vote on their national sales tax bill, which they guilefully refer to as the ``FairTax Act.'' Nothing could be less fair to the American people. In a universe of bad ideas, a Republican national sales tax reigns supreme. This proposal, pushed by the MAGA fringe, who now controls the House Republican conference, would impose a 30-percent tax on every single purchase Americans make just as inflation is beginning to drop. This so-called FairTax is truly foul legislation for American families.

For young families who want to buy a home, well, the Republican tax plan would add nearly $125,000 extra on top of the price you pay for your house--an impossible sum for many young people struggling to get their start in life.

And what about Americans out there thinking of buying a car? Under the Republican tax plan, the average American would pay $10,000 more on that single purchase alone.

What about seniors getting ready for retirement? A Republican national sales tax means people's life savings would suddenly lose 30 percent of their value. Imagine working your entire life, playing by the rules, paying your taxes, saving a little of each paycheck only to have Republicans swoop in and erase nearly a third--a third--of what you have saved up.

And it doesn't end there.

Under the Republican tax plan, a mere trip to the grocery store would be torture. Eggs are high enough right now at $4.25 a dozen. They would be $5.50 under the Republican plan. Milk, right now, is $4.40. It would cost $5.70 under the Republican plan. The same holds true for everything else: bread, produce, canned goods, cleaning supplies, soap, shampoo, toothpaste, diapers--you name it. All of it would go up by a third for millions of families--millions, tens of millions, probably hundreds of millions. It would be a devastating blow.

But do you know who wouldn't mind a Republican national sales tax? The ultrarich, the ultrawealthy. The top 1 percent of our earners wouldn't notice much change in expenses. That is who would win under the Republicans' proposal--the very, very rich--because their taxes would be greatly reduced even further, even worse than under the Trump tax cuts. No wonder, then, that even Grover Norquist--no friend of the Democrats--calls this bill a ``terrible idea'' and an ``assault on your retirement savings.''

Look, if Republicans want to start their majority with a debate on their national sales tax bill, Democrats would welcome it. Let the American people see which party is fighting for everyday folks and which party is trying to rig the game in favor of the ultrarich. It is a debate the American people need to see.

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