Saving the American Dream

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

How it Affects Low-Income Workers

A flat tax with no payroll tax, financial assistance for health insurance, guaranteed Social Security benefits, and a tax break for seniors who work beyond their retirement age.

A flat tax with no payroll tax, financial assistance for health insurance, guaranteed Social Security benefits, and a tax break for seniors who work beyond their retirement age.

A fair, flat tax with no payroll tax

Under current law, low-income workers pay the full payroll tax that funds Medicare and Social Security. Our plan eliminates this tax. A health insurance tax credit or the Earned Income Tax Credit protects you against excessive taxes. And if you choose to work beyond retirement age, the first $10,000 of your earnings are tax-free.

Premium assistance for your health coverage

Instead of going without insurance or depending on the failed welfare system, you'll receive assistance to help pay for private health insurance. If your income is below the taxable level, your assistance will be at least as much as the tax credit received by workers with higher incomes.

Begin to save and move up the economic ladder

Under Heritage tax reforms, your savings for health care - or any other purpose - are no longer hit by double taxation. Saving is investment in your future. If you don't use all of your health credit or premium assistance for insurance, you can put the remainder in a special savings account. Withdrawals from these accounts will not be taxed.

A guarantee against poverty when you retire

No matter how little you earn, you'll have a guaranteed Social Security benefit that gives you full protection against poverty in retirement. And the standard benefit under the Heritage plan is higher than the average benefit currently paid by Social Security.