Replace Social Security payroll tax with national sales tax By Laurence J. Kotlikoff Wed, Oct. 20, 2004 With Iraq on the front burner, domestic policy is getting short shrift in the presidential campaign. Two issues – the tax system and Social Security – deserve much more attention. Notwithstanding recent tax cuts, our tax system places a huge burden on middle-class Americans, reducing not just their take-home pay but also their incentives to work and save. And Social Security is a walking time bomb with no obvious means, apart from highly regressive payroll tax hikes, of covering two-fifths of its future benefit commitments....