The Zach Tax: We Can’t Afford Nunn’s Crooked Deal

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Iowans can't afford the Zach Tax

Zach Nunn supported Kevin McCarthy while a backroom deal for a national sales tax became crucial to securing support for Speaker of the House 

They’re calling it “The Zach Tax.” A new national sales tax proposed by Republicans in Congress would add thirty percent to groceries, housing, and even health care costs for Iowa families. Newly elected Congressman Zach Nunn voted for Kevin McCarthy fifteen times as a backroom deal for the thirty percent tax became part of the agreement to make McCarthy Speaker of the House

Today Progress Iowa published, a new website that  helps Iowans discover how much the proposed thirty percent sales tax would add to their grocery bill and other expenses. 

“We’re finally turning the tide on inflation, and Iowans just can’t afford the Zach Tax,” said Matt Sinovic, executive director of Progress Iowa. “Zach Nunn just doesn’t get it. Iowans want elected officials who care about us, not shady backroom deals that pick our pockets. Nunn voted for Kevin McCarthy fifteen times while he was promising support for this dangerous sales tax to come to the floor. With that crooked concession, Nunn sold us out in record time, before he was even sworn into office. 

The Tax Policy Center reported that the Zach Tax would add trillions to the deficit, it “does not add up and, as a fundamental tax reform, is essentially unworkable.”

And a recent report from the Center for American Progress concluded that the reckless tax proposal would: 

  • Impose a 30 percent national sales tax that would apply to nearly everything, including items often exempt from state sales taxes, such as housing, health care, and groceries.
  • Dramatically reduce federal revenues, requiring deep cuts in public services
  • Increase taxes for working families while slashing taxes for the wealthy
  • Shift the cost of tax administration to the states

Progress Iowa is encouraging all Iowans to visit and find out how much this reckless proposal would cost them at the grocery store, and everywhere else a new national sales tax would apply. 

Additional Information

National Review: House Republicans to Vote on Bill to Abolish IRS

“House speaker Kevin McCarthy agreed to put the Fair Tax Act on the floor as one of a number of concessions he made to House Freedom Caucus members last week in a bid to secure the speakership.”

Iowa Capital Dispatch: Iowa House members finally sworn in; Grassley becomes dean of the Senate 

“Iowa’s four Republican representatives voted for McCarthy throughout the drawn-out process, but could not be sworn in or start taking action on bills until a speaker was elected.”

Vox: FairTax, the GOP plan for a 30 percent national sales tax, explained

“The FairTax, at its heart, is simple enough: It would take almost every federal tax and replace them with a fat 30 percent sales tax on everything.”

CAP: The ‘Fair Tax’ Act Would Radically Restructure the Nation’s Tax System in Favor of the Wealthy

“The new tax would apply broadly to nearly everything Americans buy, including goods and services often exempt from state sales taxes, such as housing, health care, and groceries.”

Tax Policy Center: Proposed FairTax Rate Would Add Trillions to Deficits Over Ten Years

“The FairTax does not add up and, as a fundamental tax reform, is essentially unworkable.”

CNBC: Inflation’s cooling on two fronts

New York Times: Inflation keeps cooling