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Domenici-led group pushes new national sales tax

Former U.S. Sen. Pete Domenici (Photo by Heath Haussamen)

A bipartisan group co-led by former U.S. Sen. Pete Domenici released its recommendations for dealing with the nation’s debt and deficit on Wednesday. Among its proposals is the implementation of a 6.5 percent national sales tax.

You can find details about the “Restoring America’s Future” plan from the Bipartisan Policy Center here.

In short, the plan would slash the debt by $6 trillion, but it would do so through some controversial means – the most controversial being the sales tax that’s already being attacked as regressive.

The proposal includes many measures, including suspending some payroll taxes for a year, freezing discretionary domestic spending for four years, and freezing discretionary defense spending for five years.

In September, Domenici warned in Las Cruces that the proposal would include tax increases and cuts.

“We’re not going to ask everybody to love us,” Domenici said at the Domenici Public Policy Conference. “We’re hoping and praying that the public won’t hate us.”

You can read more on the proposal from the Albuquerque Journal, Politico and CNN.

Domenici’s group is the second in a week to unveil proposals for dealing with the nation’s debt.  Last week, a group convened by the president recommended $4 trillion in cuts.

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8 comments so far. Scroll down to submit your own comment.

  1. My comment especially refers to comments at about the 41.49 time mark regarding recommendations from Janet Ceglowski. Naturally, I think she is right for the reason stated in my comment regarding cheap labor.

  2. Only two of the eighteen on the deficit commission have submitted their recommendations. Watch them here:

    http://www.hulu.com/watch/193981/charlie-rose-erskine-bowles-and-alan-simpson-co-chairs-us-deficit-commission

    Watch it and get the facts.
    There is a 3 to 1 ratio between spending cuts and revenue raising. They do want lower corporate rates with the rational the the corporations will create jobs for Americans. The U.S. cannot lower the corporate rates enough to compete with cheap labor devoid of civil or human rights, ever. Lower corporate rates as and economic fix is an illusion and why should corporations enjoy the benefits of massive profits without the responsibility of paying for the cost of civilization?
    They bash Krugman conveniently by-passing the fact that this economy is in a demand hole due to un-employment and depressed wages. The government does and can kick start the economy and the short term investment will provide long term returns many times over correcting our terminal imbalance in this economy. Namely, prevailing wages do not cover the cost of living and employment is not keeping up with population growth.

  3. This is circular lunacy. I just downloaded “The Debt Reduction Task Force” report authored by the bipartisan “Task Force Team” and is, in my opinion, the equivalent of the next edition of Richard Lamparski’s “Whatever Became Of….” series of books.

    1. Pete Domenici, former…
    2. Alice Rivlin, former director of OMB, Clinton Administration.
    3. James Blanchard, former U.S. Ambassador to Canada.
    4. Sheila Burke, former Chief of Staff to Bob Dole.
    5. Henry Cisneros, former Sec. of Housing and Urban Development
    6. Carlos Gutierrez, former president and CEO, Kellogg USA

    The list goes on and on and includes another dozen “formers.”
    First off, are the members of this august panel getting paid for this report? If so, let’s start with spending cuts right there.
    The entire report does not address the over trillion dollars we have spent in foreign entanglements, nor does it address or challenge the very existence of the Federal Reserve Bank, largely responsible for debasing the American dollar through its practices of printing fiat currency and issuing over $13 trillion in debt. The American people have already taken an $8 trillion dollar hit on the values of their homes. And now this panel of insular elites want to put Americans on the hook for more taxes to pay for a deficit they had nothing to do with? Shame on them.

  4. Mr. Molitor:

    The Federal income tax isn’t unconstitutional, specifically because of the amendment you just mentioned, and we have repeated court findings to back that up. Furthermore, a national sales tax places an undue burden on the working- and middle-classes because it represents a larger percentage of their overall income than it does the wealthy, whereas (in theory) a progressive income tax resolves this problem.

    Of course, our tax code could hardly be called progressive, thanks to all the delightful loopholes and increasingly regressive “credits” that disproportionately benefit those who don’t actually need any more financial help… but that’s a completely different discussion.

  5. Heath,

    I think a 6.5 percent national sales tax (some call it a “flat tax” or a “fairness” tax) is a great idea as long as the 16th Amendment is repealed first in order to guarantee that this tax does indeed replace the federal income tax rather than is added on top of an already unconstitutional federal income tax.

  6. I had all but forgot about Domenici; now he resurfaces as an expert on dealing with the federal budget when he was Chairman of the Senate Budget Committee during a period when the feds could have done something to prevent the financial disaster. Now, he proposes an inane 6.5% food tax on top of another 15 cent per gallon of gas increase. And Domenici doesn’t want anybody to hate them! Please, just retire!

  7. Domenici was Senate Budget Chairman for years and oversaw deficit formation in the Reagan and bush years.

  8. Republicans alone used to push regressive taxes; now Republicans and Democrats do it together. Bipartisanship in regressive taxes proves that both parties are now indistinguishable in their concern to benefit the rich at cost to the rest of us.

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