[esarlls3]

I ran an estimate of my taxes under each plan and here are the results:

	Current	FairTax	Cain 999	Perry FlatTax
Net Rate (% gross income)	14.0%	7.5%	7.9%	10.9%
Marginal Rate (includes federal taxes on payroll, income, and sales)	30.7%	23.0%	17.3%	25.7%
Increased Disposable Income	reference	22.3%	10.9%	10.4%
Reduced Federal Taxes	reference	46.6%	44.0%	22.3%
Estimated retail price reduction	reference	10%	8%	5%

• For the current and Perry plans, I kept the current 5.7% employee FICA/Medicare tax.
  
• The retail price reductions are my estimates based on changes to the corporate tax structure in each plan. This is included in the disposable income calculation to compare with current buying power.
• This assumes spending remains constant at the current rate and the increased disposable income is saved or donated. Using increased income to enhance lifestyle would increase taxes.
• This estimate is for a Texas family of 5 currently in the 25% tax bracket with significant deductions for donations, mortgage interest, and real estate taxes.

[Quicksilver]

Under 999, I have yet to figure out where the payroll taxes go. They don’t just disappear, they’re still paid somewhere. I assume that it’s the 9% business tax. So, how does that effect individuals? Does the employer pay the employee’s payroll taxes?

[Utmost Certainty]

Interesting table. Thanks for posting that.