Rates not yet specified, likely in 15-16 percent range unless there is extensive erosion of the base. Worry will be new tax to expand spending rather than replacement for income tax. Businesses pay same rate on gross revenue minus costs of inputs, capital goods, wages, and pension contributions. Large personal exemptions in personal tax. Large exemption plus per dependent deduction.
Tax rate is subject of controversy.
Hall-Rabushka estimate 19 percent. Armey starts at 20 percent, declines to 17 percent as assumes spending cut. Other fringes not deductible. Rate 20 percent to start decreases to 17 percent as spending is cut. Some versions abolish withholding.