Well other than all of the other taxes being removed, and by that logic we already are paying a VAT tax, its called the payroll tax, and the corporate income tax. You cannot tell me that when businesses pay the payroll tax, that they do not pass the expense unto the consumer already.
I did a little searching on Cruz's tax plan (the personal one) to see if he was counting Social Security as total taxable income. Well, I never could find that answer but I did see that he wants to raise the SS age and redefine how the cost of living increases are figured - they are too high now - two years of 0 but too high.
It is going to be so easy for people - 10% will automatically be deducted from interest payments and dividends. After all, he is getting rid of IRS (so he said) so it's anyone's guess who gets to figure the 10k adult deduction and 4k everyone deduction since you have already paid 10% on every bit of income. And let's not forget mortgage interest and child care credits are staying but property taxes, local and state income taxes are eliminated.
That should wrap up the over 60's vote real well.
First of all, unless you can find the Forbes’ description incorrect, it IS a VAT. (Cruz fails to describe it much at all and in fact seems to be confused about it himself).
Now is sounds like you’re trying to justify a VAT, but a VAT is convoluted and allows the feds to invade, intrude, and interfere even more upon the internal workings of business. It is also a new tax code that would be ADDED to the existing income tax - totally unacceptable. You must FIRST repeal the 16th Amendment before proposing a new type of tax - a national sales tax but NEVER a VAT.