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WASHINGTON (UrduPoint News / Sputnik – January 27, 2023) President Joe Biden said he will fight his Republican opponents’ plans to tax all goods and services in the United States instead of income, saying such moves would harm the US economy and the best jobs. will destroy. market in 50 years.
“Why in God’s name are Americans giving up on our progress for the mess they’re proposing? I don’t understand,” Biden said Thursday. “I won’t let that happen, not in my outpost. I’ll veto anything they send.”
A group of Republicans in the U.S. Congress is pushing to eliminate most federal taxes, including income taxes, and replace them with a federal sales tax in a plan that would also abolish the Internal Revenue Service.
Some tax experts say the so-called fair tax law won’t be as fair to working families as it will reward the wealthiest Americans.
By eliminating individual and corporate income taxes, capital gains, payroll taxes and property taxes, the proposed 23% sales tax on goods and services would make the poorest Americans pay 30% more for everyday purchases.
Pointing to the economic achievements of the United States during his two years at the helm of the Democratic Party, Biden said: “This nation has gone too far, we have come too far to let that happen.”
Biden’s remarks came a day after the U.S. Commerce Department reported annual GDP growth of 2.9% in the fourth quarter of 2022, higher than the 2.6% forecast by Wall Street economists, though lower than the quarter’s growth. the third was 3.2% less.
The data also showed that US durable goods orders rose 5.6% in December, more than double the estimate. New home sales in the United States, a cornerstone of the economy, also rose in December after the Federal Reserve cut interest rates for the first time last month after aggressive monetary tightening since June.
The US unemployment rate fell to 3.5% in December, well below the 4% mark that the Fed defines as “full employment”.
“We’ve created nearly 11 million jobs, including 750,000 jobs … the unemployment rate among black and Hispanic workers is at a record low and the lowest ever recorded for people with disabilities,” Biden said.
The Fair Tax Act was a Republican proposal to counter Democrats’ calls for bipartisan work to raise the U.S. debt limit so the United States does not default on its debt obligations and keeps the government afloat. Democrats retained control of the Senate in November’s midterm elections, but handed control of the House to Republicans, allowing their opponents to pass legislation in the lower house.
The debt ceiling issue has become an annual bipartisan political battle in Congress. A protracted struggle to raise the country’s debt ceiling in 2011 led to the financial crisis, which culminated in the Standard & Poor’s credit rating agency stripping the United States of its triple-A credit status.
The Treasury Department announced last Thursday that it is taking emergency measures to prevent a debt default by temporarily halting payments that are not needed to federal pension, disability and health benefits funds and diverting money to emergency services to keep the government going until June. thought .at least.
