 In 2010, Kotlikoff offered his own tax proposal, titled the "Purple Tax" (a blend of red and blue), a consumption levy that he says cleans up some problems with the FairTax.His plan calls for a 15% final (17.5% nominal) sales tax.The FICA tax ceiling is gone and the 7.65% of the employees contribution is applied on everything after $40,000 but the employer pays 7.65% on the employees entire salary.