How would Sensible Tax Reform change business taxes?
Businesses in this country currently pay three federal taxes: Social Security, Medicare and income taxes (and possibly alternative minimum taxes as well). Businesses are required to match the Social Security and Medicare taxes of all of their employees: 7.65% of wages, salaries, commissions, bonuses, etc. up to $106,000 of pay (2009) and 1.45% above that amount (which is the Medicare tax only). That exactly equals what employees pay. In 2007, businesses paid $435 billion in Social Security and Medicare taxes plus $370 billion of federal income taxes. [For many years, businesses have paid more in payroll taxes than in federal income taxes.
