Posted on 02/08/2016 7:00:17 PM PST by kiryandil
**snip**
...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 ...
Problem for Cruz is we have heard this spin before. Instead of getting what we are promised we get the current code PLUS the additions.
That is why candidates should suggest adding anything to the tax system like a VAT. We will get the VAT, and a temporary roll back of other taxes but eventually we will go back to the existing system PLUS the add ons.
If you are a small business guy Trump’s tax plan will be favorable to you. Apparently you don’t listen to Trump because he has said ad nauseum that he is going to roll all these regulations back.
I thought Cruz and the Taxed Enough Already party killed the VAT, and now he wants a new FAT tax? Why, this is outrageous!
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That’s hilarious and timely! You did great!
Look I’d bet a lot of money you are not a small business owner so that kind of takes you out of this conversation. :-)
Cruz isn’t for VAT.
You’re his fan. The link is in another recent thread - go fish. Also, he intends to drop the employer contribution to Social Security. I am not one who believes that we should stiff those who have been paying into it all these years. But perhaps you are. But, there is no question that Cruz wants to, on record, completely remove funding the program as an excuse to cut off Social Security payments. Yes, I know the payroll tax goes into the general fund, but as long as the tax is there, there is rationale that the government can’t stop payments.
Look Cruz wanted to do something dramatic so he comes out with this pie in the sky tax plan that gives the individual a 10% tax rate. Since that’s too low he has to figure a plan to make up for it on the back of small business. So Cruz comes up with the equivalent of a VAT at 16% which is not a tax on profits but a tax on total receipts minus operating expenses EXCEPT wages. The business owner would have to pay 16% taxes on wage which are not a profit to him/her. In addition the business owner would be paying 16% on his/her own wages then another 10% when he/she files thieir own individual taxes. So a double tax on small business.
Cruz knows there is no will in Congress to do away with the IRS. Not gonna happen.
Trump’s 15% tax on profits is the better way to go to stimulate new jobs.
Here's How Much Ted Cruz's Untested Tax Plan Would Cost
excerpt....
Republican presidential candidate U.S. Sen. Ted Cruz ....It looks a lot like a VAT, even if Cruz says it isn't.
In Thursday night's Republican debate, one of the most heated clashes was over tax policy that has never been tried in the U.S.
Marco Rubio said Ted Cruz's tax plan was merely "a way to blindfold the people so the cost of government is not there for them." Cruz fired back that his proposed levy was a "business tax that enables us to eliminate the corporate tax and the death tax, eliminates the IRS," and in the process, will shrink your federal tax return to the size of a postcard.
At issue is something called a value-added tax. Cruz denies his brainchild is a VAT, but that's precisely what it is.....
Cruz wouldn’t be naive enough to pass a plan that didn’t permanently cancel the other taxes. He’s not going to be desperate to pass anything just to say he “got things done.” He’s not that kind of politician.
Cruz is a lawyer, a politician and a self-proclaimed prophet. He knows zero about business.
VAT is a job killer and doesn’t work at all. Look at Europe, to see what having a VAT and an income tax looks like.
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Wasn’t that the gist of Huckabee’s Fair Tax plan; VAT.
Each purchaser in the chain of producing and buying anything would have to pay a tax, thus progressively raising the price of goods to the ultimate consumer. What an idiot!
This is so true. For awhile I used to have my office in DeKalb county and they had a tax similar to Cruz’s that we all had to pay every year. If I had not lied like a dog about my gross receipts it would have killed me. I finally moved my office over to Gwinnett to get away from it.
It's actually a 19% tax once you read the article. And, as always, the Cruz fans will deny the entire thing because their Cruz 'visionary' says it isn't a VAT tax. Compare this to Cruz's illegal alien position of 'self deportation' that leaves all the deadbeat illegals here in the sanctuary cities and you really see what Cruz really is: a GOPe wolf in pious clothing.
That would certainly be an improvement on what we have now.
Was wondering about the regulations and found this. From 2005! Eleven years ago sure there are a ‘few’ more now.
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How tall is it when it is piled high?
??????????????????????????????????????????????????????????????????
For the federal code, if you were to assume 12 point Courier New font,
with 1 inch margins, then the 24 megabyte file (rounded; approximately
24,000,000 characters long) would be about 7,979 pages on 8.5” x 11”
paper. 7,979 pages of regular 20 lb paper stacked is about 30 inches,
or about 2.5 feet. This would include all of the beginning table of contents information.
Only “7,979 pages of regular 20 lb paper stacked is about 30 inches,”
.
I have been a small business owner since February of 1990.
As usual you are way out in dreamland.
.
Again Lagmeister demonstrates himself to be an ignorant and viscious liar.
Cruz' parents have owned three very successful businesses in the Petroleum exploration industry, and Ted Cruz has never pretended to be a prophet.
Trolling is all you have ever done here.
Most plans provide for senior to recoup those paid on their income tax returns.
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Huh? I’m 73, paid off my 30yr mortage in 20yrs and have been paying MORE to the IRS each year, while at the same time my property taxes increase each year. I no longer have enough deductions to reduce my taxes due.
How do we seniors “recoup” what we pay on our tax returns?
Then you should know better.
Do you think Cruz’s tax plan is new? Of course it isn’t. He hasn’t got clue. I have already experienced Cruz’s plan of taxing on gross receipts at the county level. He must have consulted with DeKalb County, GA on how best to suck the small businessman dry and then followed their advice.
Don’t be a sucker.
.
You have definitely not experienced the Laffer/Cruz tax plan.
Nowhere is or has it been put in practice.
What you have experienced is the standard leftist “tax it all until it falls” tax plan.
Damn tootin’ we have a COLLECTION problem TOO!
We have ~47% whom don’t pay, of which, the bottom ~5% who get $$ ‘back’ they never earned (EITC/etc.).
It also doesn’t count on those whom work under the table or those whom have retired, etc. (IE: Those that still utilize services, but pay $0).
Yes, we have a spending problem too, but it’s disingenuous to say it’s NOT a 2-way street.
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I have yet to hear what each candidate thinks is the TOP rate they think ANYONE should pay, and why.
I’d LOVE to hear what how much of MY life the Fed. govt owns. Unfort., I don’t suspect to ear the question even asked.
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