King’s support of the Fair Tax puts an unfair burden on the middle class and working families. As a decades-long supporter of this 23 percent tax increase on all Iowans, regardless of their income, King once again proves his values are out-of-line with middle class families. Whether money is spent on food for the family, gas to drive kids to soccer practice, or paying for childcare, the Fair Tax will put an extreme burden on working families.
To make ends meet, the average working family in Iowa has to make at least $50,000 a year. But with Steve King’s Fair Tax, a family’s monthly budget would have a forced 23 percent increase. Adding a 23 percent tax to childcare costs, which alone consume more than 15 percent of a family’s budget, would only make life harder. Working families cannot afford this tax. Take, for example, a family with two working parents and two kids. This family would have to spend at least $4,000 a month to cover basic expenses and the Fair Tax would add hundreds of dollars to that monthly total.
This extreme burden on the middle class and on working families isn’t fair. In fact, according to independent sources, the Fair Tax will raise taxes on middle class families while giving a tax break to the highest earners:
“Compared with the current system, the Fair Tax would be a boon to the highest earners, who spend a relatively low share of their income each year and would no longer have to pay taxes on capital gains.” [Businessweek, 4/7/11]
In an analysis of the plan, FactCheck.org wrote, “It will collect more money from those earning between $15,000 and $200,000 per year and less from those earning more than $200,000 per year.” [FactCheck.org, 5/31/07]
Congressman King does not represent the middle class and working families. Instead, King has voted to give himself five pay raises, voted to give more tax breaks to millionaires, and voted against bonus pay for active duty soldiers in Iraq and Afghanistan. Hardworking families in Iowa deserve better.