Will that also be eliminated?
Remember that is an almost 10% tax on income, directly from a person's pay check.
For a lot of wage earners that is tax is higher than the income tax that they pay.
Also, we need to remember that if the Amendment XVI is not repealed, sometime in the future, the income tax could be legally revived.
Thus, we or our future citizens would have a very high national sales tax to pay, social security and medicare tax to pay, and then a new income tax to pay.
Even a cursory glance at the coming costs of entitlements guarantees it. Our children are in for a rough ride, tax wise.
No tax is elimimated, only replaced.
Linder's plan allows the bureaucrats at SS to "determine" the gross payment tax rate every year based on their needs wants.
What about the Social Security and Medicare tax on income?
Will that also be eliminated?
Yes, HR25, is specifically drafted to replace all federal income and payroll taxes as well as the gift/estate tax, with a 23% of total expenditure for consumption retail tax.
H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information: http://www.fairtax.org & http://www.salestax.org
Just replacing the federal income tax would provide a rate of 15% of total expenditure on consumption.
Replacing both income & payroll taxes the rate comes out at 23% of total expenditure.
The general form of the NRST was discussed broadly by Alan Keyes in the last presidential elections:
Alan Keyes Interview with Des Moines Register:
- Conservative commentator Alan Keyes said Thursday one of the first things he would do as president would be to replace the federal income tax with a national sales tax.
- He said a 23 percent national sales tax could allow for the elimination of both the income and payroll taxes. If only the income tax were replaced, the rate would be between 15 percent and 17 percent.
HR25 and it's predecessors are implementations of that National Retail Sales Tax.