On Free Republic 90,000 may well be “the average Middle Income earner” - but for the rest of the nation it is pretty high.
I just about make that much, in very high cost So Cal. ;)
What happens in this scenario:
1) under current system 2) under 999 system
Self-Employed with a very small business.
Sole-Proprietor
Selling New Retail.
Two dependents (self + one full time college daughter)
Gross Sales = $ 140,000/yr
Cost of Goods sold = $ 30,000.00
Expenses = $ 25,000 (includes part time employee $ 15K/yr)
Net Profit = 85,000.00
And:
Mortgage Home Interest Deduction of $ 10,000/yr
Deductible Property Taxes = $ 5,000.00/yr
Charity givings = $ 600.00/yr
College Tuition for full time daughter = $ 6000.00/yr
(living at home - full time student - no employment)
Monthly average purchased items:
Groceries = $ 400.00/mo (no state sales tax)
Homegoods = $ 100.00/mo (8.25% state sales tax)
Restaurant Dining = $ $ 120.00/mo (8.25% state sales tax)
Utilities = $ 400.00/mo
Misc purchases/entertainment = $ 400.00/mo (state sales tax)
Fuel cost $ 100.00/mo (state & federal taxes included)
State Sales Taxes = 8.25% (no taxes on food)
No State Income Tax