Virginia U.S. Senators not fans of Republican tax plan

HARRISONBURG, Va. (WHSV) - On Wednesday Virginia U.S. Senator Tim Kaine joined 13 of his Democratic colleagues in the Senate to introduce a resolution condemning the Fair Tax Act of 2023 plan from House Republicans. The bill would impose a national sales tax of 23% on nearly all goods and services.

The tax plan would eliminate income taxes, payroll taxes, as well as estate and gift taxes in favor of the sales tax. Kaine said that the plan would be very harmful to low-income people.

“Low-income people tend to spend a higher percentage of their budget on purchasing goods and services rather than high-income people do so sales taxes tend to be very regressive,” said Kaine.

Another major issue that Kaine has with the plan is that it would also add a sales tax to medical bills.

“I’m trying to reduce medical costs so that people get the healthcare they need to stay healthy, that’s good for the quality of life and good for their economic productivity. Adding a sales tax onto medical bills would probably discourage people from seeking access to medical care which would be bad for quality of life and bad for the economy,” said Kaine.

Kaine and his Democratic colleagues said the plan would benefit only the wealthiest Americans. The Fair Tax Act would also cease funding for the operations of the IRS after the 2027 fiscal year.

In addition, the plan includes a provision that would terminate the sales tax after seven years unless the 16th Amendment to the U.S. Constitution which authorizes a federal income tax is repealed.

While Virginia’s other Democratic U.S. Senator Mark Warner was not one of the 14 Senators that introduced the resolution condemning the tax plan he is no fan of it. Warner’s office sent the following statement from the Senator to WHSV on Thursday regarding the proposal:

“For years, my office has helped frustrated Virginians who are struggling to get their refunds or even just get in contact with somebody at the IRS. That’s why I was proud to vote for the Inflation Reduction Act, which delivers needed federal dollars to the chronically underfunded IRS.

Instead of hiking taxes on middle-class folks, we really ought to be focused on implementing this bill efficiently so we can finally bring the IRS into the 21st century, improve customer service, get folks their tax returns faster, and ensure that the wealthiest Americans and large corporations pay their fair share.”

WHSV also reached out to the office of 6th District Republican Congressman Ben Cline on Wednesday for his thoughts on the tax plan but has not yet heard back.