Yes, I knew about his plan to possibly eliminate the IRS but Cruz has submitted a ‘flat tax’ on income of 10%, not 0%. It might not be the ‘IRS’ collecting it but another alphabet agency not named ‘IRS’. Cruz has also proposed a silent tax, a VAT of 16% on business which will obviously be passed on to consumers, employees, shareholders, business owners, everyone. I would go for either a ‘flat tax’ or a VAT but not both together.
His plan is far from perfect, I agree, but even having both the flat tax and the VAT would be better than having the IRS around. And that’s saying something about how bad the IRS is, because VATs are completely terrible due to how they are arbitrarily determined (this is also why land value taxation is terrible). The 10% flat tax plan on income is about as good as we’re going to get from politicians. Cruz likely wants to only implement one of them at a time.
The big reason the Trump plan is just unacceptably bad is because it keeps the IRS infrastructure intact, even if the rates themselves are lowered. A future liberal could always raise my taxes to 90% at the snap of a finger, whereas upon the destruction of the IRS it would take time to reestablish it.
We’ll probably never have a sane tax system until all non-military spending by the Feds is eliminated and the only taxation which exists is a small sales tax.
I agree. We are stuck with the income tax until the 16th amendment is repealed. If it becomes a flat tax, that is good. Instituting a new form of taxation to go with it is not a good idea. The probable result is that both taxes will be raised to the point where we will be paying much more than we are already. Repeal the 16th and eliminate income tax before talking about a new type of tax to replace it.