Posted on 11/09/2015 4:38:54 AM PST by Michael van der Galien
[VIDEO]
Texas Senator and Republican presidential candidate Ted Cruz has presented his own tax plan for America. While the tax plans of the other candidates are quite impressive, Cruz’s is by far the most ambitious and pro-growth of them all.
Last weekend, Cruz was given the opportunity to explain what his tax plan encompasses. The most important part of the plan is a 10% flat tax. In contrast to a so-called fair tax, a flat tax means that everybody pays the same percentage to the federal government. In his case, that’s 10% — 4.5% less than Rand Paul’s plan.
Cruz’s plan is ambitious not only because America currently has a progressive tax system – meaning that ‘the rich’ not only pay more in absolute numbers, but also relatively – but also because the percentage he proposes is very low.
And that’s not all. Cruz also says that a family of four doesn’t have to pay a dime to Washington D.C. over the first $36.000 they make. They only start paying taxes when they make more. Note, that means that they have to pay 10% over every dollar earned above $36.000. So when the family’s provider earns $37.000 a year, he or she has to pay 10% of $1.000. That’s $100. In one year time. Or less than $8 per month.
Interestingly enough, the Fox Business personality who talked to Cruz about his tax reform plan accused him of making life easier for the big guy – millionaires who don’t need an extra buck, let alone an extra hundred thousand or two. She added that leftist politicians and other progressive hackjobs (read: the media) will use this as their main line of attack against Cruz’s ideas.
(Excerpt) Read more at pjmedia.com ...
Get rid of the damn credits that give people money who don't even work.
Sounds good to me. Now if only I could do something about my state and local taxes.
Bill Gates too .....
I’d first have to know about what the ones making $36,000 or less will get in the way of EITC, Advance EITC, taxes on government benefits, etc.
As it is now, those low income earners (or non earners) not only do not pay federal income taxes, they get money BACK as if they had paid. The money is taken from other tax payers to give to them - for being poor.
If 10% is good enough for Jesus it ought to be enough for Uncle Sam. 🎶
Sounds like fantasy.
Very dangerously, he uses a VAT to somewhat counter the income tax reductions—which sets us up for a Euro-style pervasive tax state.
For example, low income earners may pay 20% but the highest earners may only pay 5%.
It's time we rewarded success in America and motivated people to climb the economic ladder.
By the way, the rich will still pay more in terms of dollars. For example, somebody earning only $60,000 a year will pay 20 per cent - or $12,000. Somebody earning six million dollars a year will pay 5 per cent - or $300,000.
So even though the percentage is lower, the guy making six million dollars is paying 25 times more in tax dollars. But in terms of percentage, the richer guy would keep more of his money.
This would definitely motivate the guy making $60,000 to go ahead and make $6,000,000.
All this disposable income will definitely invigorate the economy as yachts and luxury homes will need to get built. Expensive meals will get consumed at restaurants. I have a relative who was a waiter at a high end establishment. He made well into six figures just on tips.
Get rid of all the deductions, mortgage interest especially. I benefit from it currently but it makes no sense whatsoever. Eliminate deductions for charitable contributions and get rid of the IRS, a fair trade.
The owner of the little party store near my home tells me that he would be able to ditch his accountant and save some $1,500 per year just by virtue of being able to do his own taxes.
I like the idea of eliminating “tax the rich”. If “the rich” pay for FedGov, who cares whether it’s shockingly wasteful and inefficient. If we all pay for FedGov, then we have a vested interest in spending our money wisely. It’s not a solution to all of the problems in DC, but it’s a step in the right direction.
What to do if 10% is not enough? I have two answers:
(1) for each increase in spending above that level vote to increase the individual tax rate on all income above $36k to cover that excess spending, or
(2) for any new excess spending, cut spending in other areas to live within our means.
I’d like to see Ted Cruz restructure our tax system so it can no longer be used for the immoral redistribution of wealth or for the petty tyranny of social engineering.
Flat tax is a great idea. The idea that the income tax should be “Progressive” is idiotic. It is legalized theft.
How would anyone react if I walked up to them and said “You have a way better car then me, that not fair, give you keys to me”
Yet for almost a century we have allowed Government to do just that in the name of “fairness”
Sounds like just words. Just speeches. Dead on arrival.
i think it should be for EVERYONE
yes, even for gramma on fixed income- social security and retirement income excluded
Once you start tossing in exceptions democraps will promise to raise it every single election
That way the only way to make the sheeple happy is to lower the entire rate- and that’s a good thing
The Feds have to cut spending too or it won’t work. 10 percent across the board for all government excepting military . Elimination of duplicate programs. Massive reductions at HUD,EPA,Education,State,Commerce
Not good enough. It still leaves a huge portion of the population untaxed and therefore a natural constituency for spending. It needs to be 10Ì€% of every dollar from the first dollar earned, no deductions, exemptions, tax credits, or any other modifications. And if there must be withholding then the wage/salary recipient should have to sign a paper check for the amount withheld each time he gets his pay in whatever form, paper check or direct deposit. The 10% should be the entire income tax including SS and Medicare.
In my own situation that 10% would actually be marginally higher than what I do pay but when you take away the costs of compliance, marginally lower.
I read Cruz' tax plan on his web site, and while he has a 16% flat corporate tax rate vs the current rate of 35%, there is NO Value Added Tax {VAT} anywhere in his plan.
Where did you get the idea that a VAT is part of his plan?
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