Posted on 02/08/2016 7:00:17 PM PST by kiryandil
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...Ted Cruz has endorsed policies that would fundamentally change who pays the federal government’s bills, and how.
Expect the establishment wing of the Republican Party to increasingly draw attention to this fact, especially when it comes to his tax policy. While on the one hand Cruz’s plan hews to Republican orthodoxy in its large tax cuts for the wealthy, he also embraces a European-style Value Added Tax, which is a lot like a sales tax, as replacement for all payroll taxes, and which would enable the elimination of all income tax outside a 10% flat tax for all earners...
**snip**
...The downside to this is that his plan is both very regressive - shifting the burden of paying for the federal government onto the middle and lower classes during a time when only wealthy Americans are seeing economic gains - and that it places particular pressure on older Americans living off of social security.
As my colleague Shawn Tully points out, the Cruz plan would increase the price of the things we buy everyday by a lot. Cruz would argue that this would be more than offset by his tax plan’s increase in take-home pay. But what about people who no longer earn wages, like retired folks living off social security? They worked their whole life paying income taxes, and if Cruz’s plan is enacted, will have the rules of the game change on them when they can afford it least. Their entitlement payments won’t go up, but the price of everything they buy will.
Since older Americans vote in greater numbers than any other demographic group, and senior citizens are now one of the Republican Party’s most reliable voting blocks, expect Republican hopefuls to increasingly attack Cruz on this point in New Hampshire this week and beyond.
(Excerpt) Read more at fortune.com ...
>>We dont have a tax COLLECTION problem, we have a SPENDING problem.
Bingo. The pigs in the bureaucratic farm house don’t care how the sheets on the beds get laundered — as long as they’re the ones sleeping in them.
A flat tax will destroy retirement savings and accelerate the demise of the elderly competition who might put actually think they’re entitled to all those Socialist “security” dollars they’ve paid into the Ponzi scheme while WORKING.
>>Their entitlement payments won’t go up, but the price of everything they buy will.
But then that’s “Kinder and Gentler” than...
“Leave your clothes here. Glasses please? FACE THE DOOR!”
[Chekist 1992 Russian film Eng-Subs (full)]
http://www.youtube.com/watch?v=_RQVSHfuPCQ
Isn’t it?
This is left-wing balderdash from Chris Matthews. As Chris actually points out, Cruz would lower taxes across the board: Personal income tax rates go down to 10% and the payroll tax is gone.
Business would pay something akin to a sales tax, but this business tax would replace the larger corporate income tax. Just as the corporate income tax is now passed on to the customer, the new business tax would also be passed on to the customer — but it's smaller. So Grandma comes out ahead. (Not to mention that she probably cares that her children and grandchildren will be doing much better.)
So yes, Chris's Grandma would end up paying for the new business tax when she buys things, but she ends up paying for the corporate tax when she buys things today. And the new business tax is lower than the existing corporate tax.
Combine that with a commitment to reducing government spending and living within our means, and you have the makings of an economic revival.
That’s pretty harsh. Sorry you can’t handle a difference of opinion. Save the ad hominem attacks for the progressives, not fellow conservatives.
My grandma is long gone.
Bookmarked
Does anyone even use this “so and so candidate is going to kill your grandma” anymore? When’s the last time that laughable scars tactic actually worked? Fortune magazine has been in the tank for the Democrat party for decades now. Pathetic.
Yep VAT is the ultimate in indirect taxation. HUGE mistake on Cruz’s part
his is spin from our communist left. I assure you this is a propaganda lie.
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Yep. I’ve never heard Cruz propose a VAT. He has proposed a flat tax. ....Dems lying again!
Agree with the hate part. Not sure about the zotted part.
People here can be so unfair, yet they can't see it.
It won’t make prices go up. The business tax REPLACES the corporate income tax and payroll tax. It creates enormous savings in tax preparation by simplifying things. And it is NOT a European-style VAT.
Thanks for posting the listing of things Cruz proposes to eliminate or reduce.
Missing are the EPA and several others that don’t come to mind right now. ....I’ve been awake 27 hours and have to crash soon. Not ill, just have body clock problems lately.
Trump’s plan is the status quo, leaving the giant IRS bureaucracy and making it a costly nightmare to comply with. Trump retains the progressive rates which are nothing but a socialist, class warfare tool.
He’ll tax the pennies on their eyes too
It’s not a VAT, it’s essentially a stream-lining of the corporate income tax.
There is a personal exemption of 9k per person, 10% thereafter along its an exemption for savings for retirement like 401k and Roth more generous IIRC.
Everybody is going to leave the IRS in place including Cruz because there is no will in the US Congress to get rid of it. Its easy to be against something that you know will not change. If Cruz really thought he could get rid of the IRS he would just go for a sales tax and be done with it.
Trump has accepted it and is lowering tax rates on individuals and on business. He is not trying to sneak a VAT in on small business.
That is his actual plan. the hidden VAT tax
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Why don’t you post the proof of that so we can all see what you’re talking about?
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