Saving the American Dream

The Heritage Plan to Fix the Debt, Cut Spending, and Restore Prosperity

How it Affects Entrepreneurs

A simpler tax system, greater flexibility for health insurance, full reimbursement for retirement plans, and greater predictability in making long-term investments.

A simpler tax system, greater flexibility for health insurance, full reimbursement for retirement plans, and greater predictability in making long-term investments.

Lower, simpler taxes that make you more competitive

Our plan vastly simplifies your business taxes and enables you to predict the tax consequences of your business decisions. You'll be more competitive abroad because under our plan, only income generated by domestic sales of goods and services is taxed.

Taking the headache out of health coverage

Based on the outdated assumption that workers rarely change jobs, current tax policy is biased to favor defined-benefits coverage. We change this. Instead of calculating whether you can offer health insurance, you may offer your employees a defined contribution - similar to retirement contributions - towards health coverage your employees choose and own.

Full reimbursement for retirement plans

As a business owner, you will not face higher labor costs due to increased payroll taxes. If you don't currently offer your employees a 401(k) plan or Auto IRA, you'll need to start one - but you'll be fully reimbursed by the government for all costs. And your employees will be able to use payroll deductions to save for retirement.

Growth-friendly tax policies

By reducing business tax rates, our plan encourages savings and investment. All compensation to employees and all purchases from other businesses are deducted from gross domestic receipts. This means you can immediately deduct purchases of new productive equipment, thus eliminating the current tax bias against business investment.

No more death tax

In addition to policies that encourage saving and investment, we permanently repeal the estate tax so the heirs of your small business will not face tax burdens that could force them to liquidate the business you created.