Where did you ever get the idea that it would abolish payroll taxes. Sounds like a 9% payroll tax to me. Do you think that the government is going to shut down an year-round income stream and expect everyone to pony up 9% at tax time?
Phase 1 - 9-9-9
•Current circumstances call for bolder action.
•The Phase 1 Enhanced Plan incorporates the features of Phase One and gets us a step closer to Phase two.
•I call on the Super Committee to pass the Phase 1 Enhanced Plan along with their spending cut package.
•The Phase 1 Enhanced Plan unites Flat Tax supporters with Fair tax supporters.
•Achieves the broadest possible tax base along with the lowest possible rate of 9%.
•It ends the Payroll Tax completely – a permanent holiday!
•Zero capital gains tax
•Ends the Death Tax.
•Eliminates double taxation of dividends
•Business Flat Tax – 9%
◦Gross income less all investments, all purchases from other businesses and all dividends paid to shareholders.
◦Empowerment Zones will offer additional deductions for payroll employed in the zone.
•Individual Flat Tax – 9%.
◦Gross income less charitable deductions.
◦Empowerment Zones will offer additional deductions for those living and/or working in the zone.
•National Sales Tax – 9%.
◦This gets the Fair Tax off the sidelines and into the game.
P.S. The payroll tax revenue stream would be replaced by the NST, an ongoing revenue stream based on consumer purchases.
If the government gets less money that way, GOOD. SPEND LESS. BUDGET ACCORDINGLY. PRIORITIZE.
And don’t forget that the elimination of payroll taxes and all the other taxes on the list and the drop of the corporate tax from 30+% to 9% will put DOWNWARD pressure on consumer prices, which would spur consumer spending which would feed the NST.