I propose ending the Employer Payroll Tax (the additional 7.65% employers pay for Social Security and Medicare) for one-person small businesses.
Small businesses are the engine of innovation in the American economy. But the smallest of business owners start out with a big disadvantage -- they must pay a total of %13.3 of their total gross income in payroll taxes (this will increase to %15.3 when the current employee payroll tax relief expires). Worse, single-person business owners face disproportionately steep healthcare costs, and many large businesses are forcing workers into contracting positions to reduce benefits costs.
An extra %7.65 in income would give small business owners a fighting chance, and would pay for more than half of a family healthcare plan.