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 ...
Repeating the same post over and over is spamming.
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Cruz’ tax plan is endorsed by all of the SB associations.
It is a tremendous boon to small business.
Trumpatoons!
Simplifying the tax code, lowering the rates, and eliminating the payroll tax to restore incentive to work for the lower middle class are vital. But, fairness is important.
I myself share this particular concern (I have some some other concerns as well). This particular concern can be addressed by an increase in the S.S. monthly payments so as to offset the VAT or sales tax-like aspect of the proposal. (This fix is really that simple!)
Working people will get a huge increase in their take-home pay because of the elimination of payroll taxes. This will more than make-up for the VAT aspect of the proposal. But, those receiving S.S. benefits won't have this off-set.
Going through the proposal step by step in such manner might require an adjustment in the rates so as to not blow a hole in the deficit, but fairness has to be a very big priority has to be as high a priority as tax simplification, lowering the rates, restoring the incentive to work, balancing the budget and ensuring the solvency of S.S. and Medicare.
We can and must do all these things without hurting any group of us.
Great post, and very thoughtful.
Lower tax rste, less stuff being taxed...
sarc Obviously “bad” for business... /sarc
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Lying Trumpatoons stink everywhere, all the time.
Trump fans will take this for gospel.
Everyone kept asking the same question over and over, so I took the liberty of giving them the same reply.
I know how to spam. You wouldn't want to see me do it. :)
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Cruz’ plan is Laffer’s plan.
Has Trump ever owned a “small” business? I thought he was the expert of yuge and that small was beneath him. The big boys like high tax rates with plenty of deductions, because they can afford lobbyists to get ‘their’ deductions and accountants use them. Low tax rates without deductions remove their advantage. Low flat rates with minimal, if any, deductions favor the intrinsically more efficient business, which often is a smaller one. The big boys also like more regulations as they can spread the compliance costs more widely and gain competitive advantage. Small businesses, like mine, are being hammered by the regulations. Cruz gets this and talks about it. Why would Trump get this? He just pays off the politicians to get his way.
Oh, I have no doubts you excel at spam content...
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Why do you always double and triple down on your lies?
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I'm aware of what a VAT is.
I hang out at an economics forum.
I will point out that a matter of gospel over there is that businesses don't pay taxes - their CUSTOMERS pay the taxes.
I didn't write their article titles.
Here's April Ludgate:
Here's a bunny with a pancake on it's head for onona:
Man o man, TrumpETs now are going to Chrissy Matthews for their opinions. Guess you all got one of them tingles up your leg too.
No it isn’t!
http://www.freerepublic.com/focus/news/3394257/posts?page=162#162
So you are aware that this isn’t a VAT then. Good. Glad we got that cleared up...
Yes, I'm especially interested in the effect on the seniors, but good point about the employer's-share of payroll taxes.
That's a chunk of change.
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