ZWF: A 30% Sales Tax on everything?
Zander's Weekend Facts #50: Sunday, January 22, 2023
From the people who brought you a weeklong Speaker vote comes a brand new tax to replace all taxes.
Inside this week’s edition of Zander’s Weekend Facts, a look at House Republicans’ proposed 30% sales tax, and a look at what Zander’s been reading this past week. Plus, a compilation of the top headlines from the last seven days.
Also, go listen to the latest episode of the Zander’s Facts podcast! Episode 90 features a breakdown into why so much money has flooded American politics, and what could be done to bring power back to the people. Go download the Zander’s Facts podcast wherever you get your podcasts!
Here are Zander’s Weekend Facts for Sunday, January 22, 2023:
One tax to rule them all
It probably seems like a distant memory from long ago, but it was just over two weeks ago that Kevin McCarthy finally gained the votes to become House Speaker. In the over three-day-long fight between House Republicans, McCarthy was forced to give up some major concessions to far-right members of his party. Now, we’re beginning to see the consequences.
This week, news made its way around, through reporting from Semafor, that House Republicans were preparing to introduce a bill named the “Fair Tax Act.”
Inside the Fair Tax Act, a wrecking ball to the U.S. tax code. Income tax, payroll tax, estate tax, corporate tax, gift tax, and capital gains tax, all gone. The IRS, abolished.
In their place, a simple national sales tax of just 30%.
The bill, sponsored by Georgia Rep. Buddy Carter, would obviously be a drastic change to how federal taxes work.
Supporters of the bill definitely love its abolition of the Internal Revenue Service, a frequent target of Republican anger. Along with the supposed simplification of the U.S. tax system, it’s a fiscal conservative’s dream… until we get to the negatives.
Beginning with the fact that the tax itself is regressive. The Brookings Institution found that for the bottom 90% of households (those making around $170,000 or less), taxes would actually rise. While those in the top 10% would pay less in taxes each year.
Yes, the study dates back to 1998, but the idea is not entirely new. It’s flown around conservative talk radio since at least the 1990s. In fact, the Brookings study came as a direct result of the AM radio mumblings. More recently, the Tax Policy Center found similar conclusions.
So here’s what that means. A $50 stop at the gas pump (you wish) would now be $65. A $100 tab at the grocery store turns into $130. That new $999 iPhone just became $1299. I can go on, but moral of the story, the price goes up, big time.
Normal bastions of Republican economic policies, National Review, The Wall Street Journal opinion pages, are even balking at the proposal, calling it a “gift” to the Democrats.
Of course, the bill has no chance of passing. It’s not even likely that enough Republicans will vote for it to pass the House, not to mention the more modest Senate. And President Joe Biden has called the bill a “great idea.” (I’ll let you guess which tone of voice he used there.)
But it will come up for a vote on the floor of the House. Speaker McCarthy promised. And remember, it only takes one Republican to bring up a vote to replace him. Welcome to month one of the Republican House of Representatives.
What Zander’s been reading this week
It turns out that the largest threat to America’s electric grid might not come from Russia or China, but from inside our own country. Last year, the grid was attacked over 100 times by domestic terrorists across the country. And the worst may still be coming.
Check out this week’s featured article on Newsweek - Domestic Terrorists Could Take Out U.S. Power Grid—and Attacks Have Started (Link for article on Apple News)
Zander’s Facts Sporting Club
Here are the top headlines from the sports world in the ZF Sporting Club:
NFL Playoffs - Divisional Round: The NFL postseason continues this weekend as the #1 seeds in each conference return to play. With spots in the Conference Championship games up for grabs, the second round of the playoffs started on Saturday. In the afternoon, the #1 Chiefs were able to hang on at home against the #4 Jaguars despite quarterback Patrick Mahomes picking up an injury with a 27-20 win. In the evening, The #1 Eagles dominated their NFC East rival #6 Giants in a 38-7 win. Later today, the #3 Bengals face the #2 Bills at 3:00 pm et on CBS with the winner facing the Chiefs. Then at 6:30 pm et on Fox, the #5 Cowboys take on the #2 49ers with the winner playing the Eagles next week.
Gonzaga Men’s Basketball: #6 Gonzaga suffered a massive upset to Loyola Marymount in men’s college basketball on Thursday night. Gonzaga surrendered their first home loss in 76 games when they lost to Loyola Marymount 68-67. Additionally, it was the first time since 1991 that Loyola beat the Bulldogs in Spokane, Washington, and the first time since 1961 that Loyola beat a top-ten ranked team. The new holders of the longest home win streak in the country are Auburn, with just 28 straight home wins. Gonzaga’s 75-game streak was the longest in college basketball in the last 39 years. Also in college basketball news, #2 Kansas’ 83-60 home loss to #14 TCU on Saturday tied the largest home loss ever by a top two ranked team in the AP poll.
LIV Golf T.V. Deal: The Saudi Arabian-backed LIV Golf announced it has reached a media rights deal with The CW Network. LIV, which aired its tournaments last year on YouTube, will now show the second and third rounds of its tournaments on The CW, with the Friday first rounds airing on The CW app. The CW, which hasn’t broadcast sports since WWE Smackdown in 2008, was bought last year by Nexstar Media Group, which owns many local television stations and recently launched the cable network NewsNation. On Friday, the National Press Club sent out a statement that called LIV a “shameful PR stunt” and said it was “deeply disappointed” in Nexstar.
Darius Miles: Alabama men’s basketball player Darius Miles was charged with capital murder after a deadly shooting in Tuscaloosa. Last Saturday, it was announced by Alabama that Miles would be out with an ankle injury for the rest of the season. Less than one day later, Miles and Michael Davis were arrested after a shooting took place early Sunday morning. On Friday, Alabama head basketball coach Nate Oats said that the team hadn’t noticed any character issues with Miles before the incident.
Georgia Football: Two members of the National Championship-winning Georgia football team died last Sunday after a car crash. 20-year-old Devin Willock, an offensive lineman, and 24-year-old staff member Chandler Leroy, both did not survive a single-vehicle crash that occurred less than one week after the Bulldogs win in the National Championship game. Two other passengers, Warren McClendon and Tori Bowles, suffered injuries.
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Rapid-fire Facts
These are top news headlines from the past week in rapid-fire fashion:
U.S. Debt Limit: The United States government hit its debt limit on Thursday. The debt limit is the amount of money the government can borrow. When it hits the ceiling, the federal government can no longer borrow money and pay for essential government services. However, Treasury Secretary Janet Yellen noted that the Treasury Department will take “extraordinary measures” in order to make sure the U.S. does not default on its debt and can fund government services for the next few months. Ultimately, Congress will have to come to a deal to raise the limit in the coming months.
Jacinda Ardern: New Zealand Prime Minister Jacinda Ardern announced her resignation this week. Ardern, a member of New Zealand’s Labour party, was first elected in 2017, when at the time she became the youngest female head of state at 37 years old. Ardern became famous worldwide for her response to the Christchurch mass shooting in, and her response to the Coronavirus pandemic. However, polling has showed her approval at low levels and appeared to signal a difficult reelection path in October’s elections. The Labor party is expected to elect Chris Hipkins as New Zealand’s next prime minister on Sunday.
Politician Shooter: Police in New Mexico arrested Solomon Peña, a candidate in November’s New Mexico House elections, on Monday. Peña, a Republican, lost in November’s elections in House district 14, where he received just 26% of the vote. Peña is charged with paying four men to shoot at four different elected officials’ homes in the Albuquerque area. Police allege that Peña took part in one of the shootings himself, and that in another, bullets went through the walls of a 10-year-old girl’s bedroom while she slept.
China’s Population: For the first time since 1961, China’s population declined last year. In 2022, China’s National Bureau of Statistics reported a population drop of 850,000 people, leaving the country with around 1.41 million people. It’s just the beginning of what experts believe will be a longterm decline in population for the country, with the United Nations estimating that the population could drop by over 100 million by 2050. The decline could mean a smaller labor force and manufacturing output, which could bring economic ramifications that exist outside of China’s borders. It is also expected that India will pass China as the world’s most populous country later this year, with the UN projecting India to have a population of over 1.41 million.
Alec Baldwin: Actor Alec Baldwin is expected to be charged with involuntary manslaughter in New Mexico. While on the set of the movie ‘Rust’ in October 2021, Baldwin was pointing a pistol at cinematographer Halyna Hutchins when it went off. Hutchins was killed and director Joel Souza was wounded. Hannah Gutierrez-Reed, who supervised weapons on the movie set, was also charged.
Wrapping up the Facts
Before this edition of Zander’s Weekend Facts wraps up, here’s another reminder to check out the latest episodes of the Zander’s Facts podcast. Download and listen to the latest episode of the podcast, along with every episode of Zander’s Facts, wherever you get your podcasts.
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You can also listen to every episode of the podcast on this very website. All Zander’s Facts podcast episodes are now available on zandersfacts.substack.com under the “Zander’s Facts” tab for your enjoyment. That includes the next episode of the Zander’s Facts podcast, which comes out this Wednesday!
That’s a wrap on this week’s edition of Zander’s Weekend Facts. The Facts in print return next Sunday, January 29, 2023.
