How is Cruz’s plan being construed as a VAT when he portrays it as flattening existing corporate taxes?
I don’t know the VAT argument is a red herring probably that comes from other campaign’s propaganda arms?
What Cruz is portraying and what is reality are two different things.
How do you think you can offset giving the general public a 10% individual tax rate without getting the rest of the money from somewhere?
Cruz is offsetting his individual insanely low 10% tax rate with a job killing VAT tax on business. Business’s will have to pay 16% on all revenue including wages. They will only be able to deduct expenses. So you pay your employees’ their wages then 16% on top of that. Then you are paying 16% on your own wage and then another 10% on your wages at tax time. How many people will you hire?
Cruz had to do this to get a decent score from the CBO. In reality its a terrible plan that will not kickstart the economy or create jobs. I owned a small business for 17 years and this would have been a killer for me. Ted has never owned or operated a business or as far as I know even worked in the private sector. He has no clue of how to get the economy back on track.
Trump’s plan will actually bring back the offshore money and create a lot of jobs fast and jumpstart the economy. Of course it will cost some money to do this. Look what it took to get us in this ditch. Its going cost some money to get out. anybody pushing a break even tax plan at this point is pie in the sky.
-— How is Cruz’s plan being construed as a VAT when he portrays it as flattening existing corporate taxes? -—
It’s not formally a VAT, but since corporations largely pass taxes on to consumers, it’s effectively a VAT.