Newhouse claims Sessler supported a 30% sales tax. It’s misleading, but true — here’s why

An incumbent congressional candidate in Central Washington is attacking his opponent over previous support for a perennial bill that would eliminate the need for the IRS and establish a "30% sales tax on everything."

But the campaign for Jerrod Sessler , the Prosser businessman who is running to oust fellow Republican and U.S. Rep. Dan Newhouse , says he has pledged to oppose any new tax increases and wants to cut federal spending.

"This is a stark contrast to Dan Newhouse, who has imposed a 'stealth' tax increase on every American in the form of unprecedented inflation," wrote Matt Brown, Sessler's campaign manager, in an email.

At issue is the FairTax Act, a bill that has been debated and reintroduced in Congress for nearly three decades now.

The bill would eliminate federal taxes on income, estates, payroll and gifts in exchange for a flat 23% federal tax on sales and services, according to fact checking website PolitiFact .

In simplifying the tax code, the FairTax Act also aims to defund the Internal Revenue Service.

Some argue the 23% tax is actually 30% since the "gross payment" on $100 worth of goods would actually come out to $130.

According to a summary of the bill's 2023 iteration , there would be exemptions for used and intangible property, businesses, exports, investments and for state government functions. U.S. households would also receive a monthly sales tax rebate based on their size and income.

FairTax Act

The FairTax Act received renewed attention after former House Speaker Kevin McCarthy agreed with conservative hardliners to hold a hearing on it. But the legislation has never seen a floor vote.

The bill has been used for political lashings in recent years.

After Republicans took control of the U.S. House, in early 2023, Rep. Buddy Carter, R-GA, reintroduced the bill and was subsequently attacked by Democrats, who labeled it a "30% tax on everything."

Then, later that year, during the Republican Party's presidential primary, former President Donald Trump bashed Florida Gov. Ron DeSantis over his previous support of the bill. While serving in Congress, DeSantis had co-sponsored the legislation's introduction in 2013, 2015 and in 2017.

Newhouse's attacks on Sessler take a similar approach: Highlighting the tax as an addition while omitting details that the legislation would also repeal several other taxes.

His campaign has taken that spin to TV ads and campaign events, too.

One such mailer flagged by the Yakima County Republican Party shows a kooky-looking Sessler alongside text that reads "Jerrod Sessler is one strange guy. His ideas are costly and dangerous for Washington," and on the other side, "Jerrod Sessler wants you to pay a 30% sales tax on everything."

It's unclear if Sessler still supports the FairTax Act. Brown did not respond to the question put forward by the Tri-City Herald this week, and didn't say what prompted the alleged position change.

Sessler's campaign had included a web page and YouTube video dedicated to his support for the FairTax Act, but those appear to have been recently taken down after Newhouse began his attack ads.

However, the Herald was able to screenshot the page last week before it went offline.

Sessler writes that he supports the FairTax Act because it "makes sense for America," calling the current taxing system a "disaster."

"The FairTax levels the playing field for all Americans. In so doing, it also protects the most vulnerable among us. The more you spend, the more tax you pay, but the percentages are the same for everyone so the FairTax doesn't discriminate," he writes.

"Eliminating income tax and focusing the tax burden at the point of sale will tremendously improve as well as simplify the United States tax system. Adopting the FairTax (Act) would allow trillions of dollars to be repatriated from off-shore accounts, money that could be put to use in America," Sessler continues.

FairTax criticism

While simple on its face, the FairTax Act has been criticized broadly as a regressive tax plan that would impact poor and middle class families the most. It would also impact retirees living on fix incomes, including those on Social Security and off of savings accounts.

PolitiFact reports that by removing federal taxes, the FairTax Act would also remove with them deductions and credits, including the child tax credit, which lifts millions of families out of poverty.

President Joe Biden said in a speech last year that FairTax would raise prices on everyday items, such as groceries and gas, for millions of Americans while cutting taxes for the wealthiest Americans. The tax would also apply to some goods that are often exempt, such as rent and the sale of new homes.

The Center for American Progress, a nonpartisan, liberal-leaning think tank, argues the legislation would "likely undermine the federal government's ability to support basic public services," including funding Medicare and the Department of Defense.

Simply replacing existing taxes would require the new national sales tax to have a rate closer to 60% — maybe even higher — in order to cover existing revenues, reports a 2004 estimate from the nonprofit Brookings Institute .

Sessler is running to oust Newhouse over his 2021 vote to impeach Trump for fomenting the Jan. 6 riots at the U.S. Capitol. He is endorsed by the former president, and argues Newhouse's legislating has led to higher prices for Americans during the Biden Administration.

The Prosser Republican came in first during the Aug. 6 primary election, earning 33% of the vote in an eight-person race. He and Newhouse, who came in second with 23%, will appear on the Nov. 5 general election ballot.

Ballots are being mailed out to registered voters across Washington state this week.

Voters have until Oct. 28 to register or update their information online at vote.wa.gov. After that, they have until 8 p.m. on election day to visit their local elections department in-person to register and vote.

Newhouse, a five-term Republican from Sunnyside, is seeking a sixth term representing Washington's 4th Congressional District, which stretches from the U.S.-Canada border down to the Columbia River, and includes the Tri-Cities, Omak, East Wenatchee, Moses Lake, Yakima and the Yakama Indian Reservation.

Out of Washington's 10 congressional districts, this one is the state's most Republican leaning .