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20% is an overstatement. However, 7.5% is not, and that is a HUGE savings for an employer. Plus, when you add in maybe 2-3 per cent for the accountant/bookeeper/tax professional fees (not an unreasonable assumption, based on my own history), you have a 10 per cent net savings (from payroll) to the business owner.

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.

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.

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%.