Heritage announces its new tax plan -- The New Flat Tax--Easy as One, Two, Three
Note how Heritage feels its rate is low at 28% but ignores the Fair Tax rate even lower rate of 23%.
A rate of 28 percent is comparable to or significantly below the typical rate facing an individual or family today. A working family today is subject to a 15.3 percent payroll tax rate, plus either a 15 percent or 25 percent individual income tax rate, for a combined rate of 30.3 percent or 35.3 percent.
The Fair Tax plan is also simpler -- make a purchase and pay the tax
For individuals, the New Flat Tax is as simple as one, two, three—one rate, two credits, three deductions. The New Flat Tax applies a single tax rate, about 28 percent, to wages and salaries and related benefits after subtracting all net saving. Taxable income is reduced by the net amount contributed to savings, and savings will be taxable only when spent.
Also it appears the Heritage plan does not protect your privacy, you still need to report your income to the government. Under the Fair Tax your income, spending, and savings are none of the government's business.
Fair Tax on business -- zero tax rate
Today’s business tax code is replaced with a tax on the sales of domestic goods and services with deductions for labor costs and business costs, including expensing of capital purchases. After a brief transition period all business activity, including corporate, will be taxed at the same, low rate that applies to individuals. Really? 28% a low rate for business -- try zero.
Remember businesses do not pay taxes -- a business only collects taxes (plus compliance costs) from the consumer and passes your money on to the government.
It really should not surprise anyone why the Flat Tax advocates do not want to compare their tax plan to the Fair Tax in a public forum -- because Fair Tax wins!