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.
Single-rate VAT imposed on business income. Both taxes have a credit for payroll taxes. Personal Tax Individuals taxed on all income except fringes and tax-exempt interest. Unlimited deductions for net saving, some education costs, mortgage interest, and charitable contributions. Compensation not deductible.