What are the key parts of Sensible Tax Reform?
• Almost all federal taxes for American businesses will be eliminated. • Social-Security and Medicare taxes will disappear. • Estate taxes will end. • Only individuals with very high incomes will pay any income taxes. • The alternative minimum tax will be eliminated. • A new federal consumption tax on retail purchases will be introduced. Since the new STR tax will be retail tax, it will not be imposed upon businesses. Sensible Tax Reform will effectively un-tax American businesses. For individuals, the myriad of current taxes will be replaced primarily by the federal consumption tax alone. Back to Top 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) an
