[Congressional Record (Bound Edition), Volume 150 (2004), Part 14]
[House]
[Page 19094]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          OUTRAGEOUS SALES TAX

  (Mr. SHERMAN asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. SHERMAN. Mr. Speaker, I rise to address a bill by the gentleman 
from Georgia (Mr. Linder). It is co-sponsored by the majority leader, a 
bill which the President has indicated he looks upon favorably. It is 
to abolish the income tax and impose a ``23 percent sales tax on all 
Americans.''
  First, I headed the largest sales tax agency in the world for 6 
years, and I am going to tell you, you cannot administer a 23 percent 
sales tax. That is why Europe uses a value added tax.
  Second, a 23 percent tax would not replace the revenue. It would 
leave our troops in the field without the supplies they need.
  Third, imagine a billionaire decides to travel to luxury resorts in 
France for an entire year. His property is protected by the American 
Army, his person is protected, he enjoys all the joys of being an 
American citizen and pays absolutely zero in tax.
  Now imagine a retired couple. They have paid tax on all the money 
they have made. They squirreled it away. They have invested in 
municipal bonds. This thing passes. The muni bonds drop in value. They 
are receiving this income, and they are paying 23 percent on their 
food, 23 percent on their health care, 23 percent on their 
pharmaceuticals. They can no longer afford food, so they are buying dog 
food, and they are paying 23 percent on that. This is an outrageous 
bill.

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