The plan is a starting point. None the less, it would lower taxes on many that pay taxes now. It eliminates the payroll taxes on Medicare and Medicaid which is 7.65% for all workers. This DOES NOT include the 8% or more, that the employer pays on the employees behalf.
The flat 9% on Business would make the U.S. one of the lowest effective tax rate for business taxes in the World. It would be a boon to businesses and subsequently job creation.
I hate the sales tax, however, it would capture a large amount of people who pay no taxes on income by working under the table, IE ILLEGAL ALLIENS!. All states have a payroll tax, so the collection is already done for the government.
The IRS can be eliminated or scaled back to bare bones and yo could do your tax returns in two minutes on the size of a post card.
My wife and I spend many hours reporting our taxes even with Software. We also have boxes of records and dozens of pages of tax returns every year and like I told her ‘We don't even make any money to speak of!”
True, but it also ‘captures’ every dime of SS, dividends from tax free municipal bonds, etc. Then it taxes savings which have have already been taxed by another 9%.
Businesses get to deduct all sorts of things under the 999 plan, but individuals only get to deduct charitable contributions.
It has zero chance of ever passing.