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 ...
And its not going to get put into practice on a national level as Cruz has zero chance to win the presidency. :-)
Crus thinks the top rate should be 10%.
yup.
It’s worse than disastrous. It’s also a way for officials to hide the cost of govt from the citizenry.
Course, few, if any, in D.C. know the 1st thing about running a biz...but they sure know how to spend other people $$ on that which they have no authority to do so.
“Currently employers pay ~7.5% in FIca and SS taxes.”
The same ‘biz don’t pay taxes’ applies. Employers DON’T pay 7.5%...they merely reduce ones pay by 7.5%+
Now, Mr. Cruz, where is the employees ability to reduce THEIR HCare costs, like a biz (whom has NO care the pro/con of what is supplied, let alone their OBLIGATION to provide the same)?
A while back read an article that revealed if all the HIDDEN tax cost were removed how much the prices would be.
It was enlightening!!!!!
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Presently, Cruz has the best chance of all of reaching the presidency.
18:1 on the Euro sites.
Place your bet, grow rich, come back and laugh at the Trumpsters.
Nobody except the most conservative republican voters will vote for Cruz. He will lose the Indies and the Dem candidate will sail into the Whitehouse.
10% too high, IMO. I’d love to see him pretzel an answer on ‘ownership’ of that 10%.
Tell me, Mr. Cruz/etc., how that 16th, let alone the 10%, jives with A1S8, some of the other Amendments, specifically the 5th/13th, let alone the Fed Reserve, as govt can print up any amount they wish.
At the worst, the 10% should be progressive...DOWNWARD as the ‘poor’ use more services than the ‘affluent’. Course, I ain’t seen a ‘poor’ person in the U.S. in my lifetime. They all seem to have homes/cars/TVs/cells/gaming stations/AC/electricity/running water/smokes/tattoos/drink/lottery/etc.
From Cruz's tax page:For businesses, the corporate income tax will be eliminated. It will be replaced by a simple Business Flat Tax at a single 16 percent rate. The current payroll tax system will be abolished, while maintaining full funding for Social Security and Medicare. The convoluted tax code will be replaced with new rules of the game – so simple, in fact, that individuals and families could file their taxes on a postcard or phone app. The Death Tax will be eliminated. The Alternative Minimum Tax will be eliminated. The tax on profits earned abroad will be eliminated. And of course, the Obamacare taxes will be eliminated. Also gone will be the unending loopholes in the current code, the stacks of depreciation schedules for businesses, and the multi-tiered rates on income and investments. Under the Simple Flat Tax, the Internet remains free from taxes.
So... You are either lying, or you have no clue what you are talking about. Your description doesn't match his proposal.
Link? We talking the ‘cost of biz’ (manufacturing/labor/biz2biz) or ‘cost of govt’ (regs/unions/OSHA/EPA/IRS)?
I expect costs built into the process (the former point). I can’t see the justification for GOVT to be at the head of the line w/ their palm out for doing NOTHING during the process but hinder...
Buy, BOY HOWDY, is it easy to see when VAT in Europe kicked in. It was so...unexpected, as the ‘economics’ would say.
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Total B.S.
He will be the winner when all the liars and other noise makers run out of donations.
Walker fell, Carson fell, Trump has the MSM so he can entertain us for a while, but he may lose his sugar daddy to Rubio.
In the end it is still Ted on top.
Do not have the link. Just remember reading the article. It may have been posted here. Just the tax costs!!! Think it included city, county, state and fed. It sounds like something John Stossel would do, it may show up in my memory bank and it may not. :)
Quote:
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A while back read an article that revealed if all the HIDDEN tax cost were removed how much the prices would be.
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Think i mentioned Tax cost.
A while back the labor burden on the employees was running just about 60%, again memory, do not have my payroll records anymore, but some employees could or would not believe they were that high.
Take care.........pilgrim
The Ted Cruz VAT that doesn’t get much coverage.
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No VAT in the Cruz tax plan. If I’m wrong, please provide details of where it lurks.
Read post #129 and follow the link.
The government doesn’t calculate the cost-of-living adjustment for seniors properly to begin with.
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I’ve been on SS for 11 years and I think I’ve only seen ONE slight increase in my net pay, but the Medicare deduction from my check increased a couple of times to wipe that out.
"There's no consumer-level tax, but economists across the political spectrum say it's a subtraction-method value-added tax [VAT]."
"Most tax experts said Cruz is proposing a form of VAT known as a subtraction method VAT, where the tax is applied to the difference between the amount a product is sold for and cost of buying the goods from another business to create the product."
PM me with the name of whatever drug you are on so I can get some. :-)
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