(NewsNation) — President Joe Biden is set to deliver his first major economic speech of the year Thursday afternoon, expected to slam the GOP bill to abolish the tax code.
According to one administration official, Biden plans to go on the offensive, shining a spotlight on a Republican economic plan that would impose a 30% national sales tax on everything Americans purchase and abolish income taxes, estate taxes, payroll taxes and virtually end the IRS.
The president believes the plan would do serious damage to the economy if it were ever adopted.
Democrats also said the plan at face value is a political loser for Republicans with congressional Democratic leaders rushing to bring attention to it.
They believe that getting rid of income tax in favor of a super-sized sales tax will seriously affect lower-income and middle-class Americans while benefiting wealthier Americans who currently shoulder most of the tax burden in the U.S.
But frustration over the $80 billion funding boost for the IRS passed by Democrats last year has Republicans wanting to make bold statements about changing the tax code — including scrapping it altogether.
Rep. Buddy Carter (R-Ga.) introduced the Fair Tax Act, defending the plan to NewsNation by saying it’s more of a fair tax code and lower-income Americans would get a monthly payment to help cover their costs.
That means workers would get to keep the entirety of their paychecks without having to pay out anything to the government. But it also means that buying everything from groceries to automobiles would be hugely more expensive.
“This is the most fair tax you can get,” Carter said. “And I would submit to you, has it worked in other places? Let’s look at Texas and Florida. Texas and Florida don’t have income taxes. All they have is sales tax. Two of the biggest economies in the world. And they are doing fine with it.“
Versions of the far-reaching plan have been around for decades. However, it is important to remember that while Republicans control the House, Democrats still hold the Senate and the White House. Plus, while the plan does have support among a growing number of Republicans, there are many — including House Speaker Kevin McCarthy — who say they’d vote against it.
For now, the chances of this plan becoming a law are slim at best.
NewsNation affiliate The Hill contributed to this report.