Proposed Provision: F5. Tax Reform for Business: Establish a value added tax (VAT) of 3.0 percent for 2021 and 6.5 percent for 2022 and later. Assume about 75% of personal consumption expenditures is subject to the VAT.

OASDI Cost Rates and Income Rates
(as a percentage of taxable payroll)

  Income Rates Cost Rates
Year Current Law Provision Current Law Provision
201912.812.813.913.9
202012.912.913.913.9
202112.912.414.114.1
202212.912.414.214.2
202312.912.514.414.4
202413.012.514.614.6
202513.012.514.814.8
202613.112.615.014.9
202713.112.715.215.1
202813.212.715.415.3
202913.212.715.615.5
203013.212.715.815.7
203113.212.716.015.8
203213.212.716.115.9
203313.212.816.216.0
203413.212.816.316.1
203513.312.816.416.1
203613.312.816.516.1
203713.312.816.516.2
203813.312.816.616.2
203913.312.816.616.2
204013.312.816.616.2
204113.312.816.616.2
204213.312.816.616.1
204313.312.816.616.1
204413.312.816.516.0
204513.312.816.516.0
204613.312.816.515.9
204713.312.816.415.9
204813.312.816.415.9
204913.312.816.415.8
205013.312.816.415.8
205113.312.816.415.8
205213.312.816.415.8
205313.312.816.415.8
205413.312.816.415.8
205513.312.816.415.8
205613.312.816.415.8
205713.312.816.515.9
205813.312.816.515.9
205913.312.816.616.0
206013.312.816.616.0
206113.312.816.716.0
206213.312.816.716.1
206313.312.816.816.2
206413.312.816.816.2
206513.312.816.916.3
206613.312.817.016.3
206713.312.817.016.4
206813.312.817.116.4
206913.312.817.116.5
207013.312.817.216.5
207113.312.817.316.6
207213.312.817.316.6
207313.312.817.316.7
207413.412.817.416.7
207513.412.817.416.8
207613.412.817.516.8
207713.412.817.516.8
207813.412.817.516.8
207913.412.817.516.8
208013.412.817.516.8
208113.412.817.416.8
208213.412.817.416.8
208313.412.817.416.7
208413.412.817.416.7
208513.412.817.416.7
208613.412.817.316.7
208713.412.817.316.7
208813.412.817.316.7
208913.412.817.316.7
209013.412.817.416.7
209113.412.817.416.7
209213.412.817.416.8
209313.412.917.516.8
209413.412.917.516.9
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