Babbitt Proposes 5% Sales Tax to Cut Deficit
United Press International
DES MOINES — Democratic presidential hopeful Bruce Babbitt said Tuesday he would raise $40 billion to cut the U.S. budget deficit by imposing a federal sales or consumption tax of about 5%.
The former Arizona governor admitted the call for a tax increase was politically risky and likely to draw fire from his competitors. But he said he hoped the proposal would put an end to the “spirit of evasion” that is dominating the campaigns of other Democratic candidates.
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