According to the legislation, it would get rid of things like income tax, wealth, and gift tax and instead impose a national sales tax of 23 percent.
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It is called the "Fair Tax Act of 2023".
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An economist at the Tax Foundation, an independent tax policy nonprofit, explained that people would pay more like 30 percent because the 23 percent rate is "tax inclusive."
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He has said that the lower and middle class families will be most affected by this.
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Senator Chuck Schumer (D- NY) is slamming the proposal.
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"So this plan is dangerous, it's a disaster," said Sen. Schumer. "It will hit almost every single American family the worst."