Cruz’s comment was prompted by recent reports that the IRS targeted conservative groups applying for nonprofit tax status that were linked to the Tea Party.
Cruz has advocated for an overhaul of the U.S. tax code. A flat tax would ensure that everyone paid the same tax rate regardless of income levels. The FAIR Tax Act would eliminate the current tax code and establish a federal sales tax. Conservatives argue that a federal sales tax is “fair” because it’s based on consumption, but Democrats argue that it disproportionately affects low-income families since they would no longer be able to use the Earned Income Tax Credit among other reasons.