Subject: Payroll taxes
Comment: As a small business owner with 10 employees, when the FairTax is passed I will immediately increase our employees pay by an amount equal to the Payroll and Medicare taxes currently paid by our company. After all it’s their money anyway.
With all of our employees receiving an effective 15.3% increase in pay, (7.65% employee contribution and 7.65% employer contribution for SS and Medicare) that’s 2/3 of the proposed sales tax rate of 23% under the FairTax and all of our employees will be better off.
If all employers do this, as I expect they will, the real tax rate for the FairTax is only 7.7% for employees with income up to $90,000 and 20.1% on income over $90,000 because there is no cap on Medicare.
Richard R Bourgeois, President
Virtual Software Systems, Inc.
7715 Browns Bridge Rd
Gainesville, GA 30506