Like I said, I don't know about this particuar plan. If they are saying that the business owner gets a windfall of 20% because he doesn't have to withold taxes, then that is just silly. However, there certainly WOULD BE savings if we went to a tax system where I am not forced to be the collection agent for the fed, as a small business owner.
Well that is what fair taxers have been saying for years and that is what Boortz book claims. And you must remember, the 7.5% payroll tax is just on wages, not on gross sales. The savings businesses will see will be under 10%.