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 ...
How do you fund Obamacare, since the Supreme Court said that it is a tax?
Obamacare is not going away. The GoPee wants it as well as the rats.
If 10% goes to Jesus. then it’s blasphemous to give anything close to that to government.
Great. If flat tax means truly that - NO deductions, exemptions, etc. With all the whining about “the rich” not paying their “fair share” (whatever that is) - it is often left unsaid that the real way they don’t pay is using all the loopholes. How often have we heard that Rockefellers, Kennedys, GE - all paid $0 in taxes? So don’t raise the percentage - but make them pay their “fair share” - which is the same as everyone else. 10 percent of several million dollars is a lot more than 0.
And we just keep spending like there’s no tomorrow.
It would be an increase on the poor, and a decrease on the semi-rich (not megarich) so it will never fly. No way in hell will this country ever get back to everyone paying a real fair share, the definition of “fair share” has been forever hijecked by the leftists.
Exactly that, of course, is how it is or should be. Tax less federally and tax more state & locally.
The closer those suckers are to you the easier it is to get rid of them or that is the theory. Also, you can more easily go see them to discuss/complain, etc.
Since the median family income in America is about 50,000, iirc, that means half of America will pay annually something between zero and $1500. But, remember, Cruz says this INCLUDES SSN and MED, which are about 7% of current adjusted income that probably comes to about 40000 for most people. So they’re paying 2800 now.
For me, it would be about half of what I’m paying now.
Those who get checks back from the government based on things like earned income credit will see it as hurting them
You almost want to charge them something so you can send it back to them.
“Where did you get the idea that a VAT is part of his plan?”
This article from Forbes suggests that his “Business Flat Tax” is actually a VAT:
Cruz keeps the Child Care and EI Credits in some form.
The business flat tax is just a business transfer tax by another name. The business will pass the costs directly on to the consumer, so it will have roughly the same effect as a sales tax. Much like in PA recently where the fuel tax was implmented as a “corporate tax” on businesses, but we can now see that it was passed on 100% to the consumer to give us some of the highest gas prices in the US.
As opposed to the current business tax which is based onn profits, Cruz’s proposed business tax is on revenues less some deductions for rhings like equipment purchases.
I don't know any poor people who make $36,000.
That’s because the details are in how that 16% corporate tax is calculated. It is a VAT.
I would feel absolutely poor if I made that amount. If you have a kid, at that income, one currently qualifies for the Earned Income Cerdit, so the media would definitely consider them poor for purposes of advancing thei leftist agenda.
we need a sales tax too. If you live here you need to be responsible...IMO
Yeah, I’ve always said that the same taxes would be far more palatable at the state and local level where I have greater control.
Nothing I hate more than paying taxes so someone on the other side of the country can get an app for their phone that finds them empty parking spaces.
Does that include only Fed Withholding? Or does it include Medicare and SS?
H1B employees are going to be in demand since they make much less than a comparable American employee.
Simple, elegant, and fundamentally sound.
And DOA with nearly 50% of our gimmmedat voting population.
“No tax under $36K? What happened to my EITC?”
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%,Ignorance is bliss.
It's not a "corporate tax". Not all businesses, in fact few, are corporations.
Presently there is no such thing as a "business tax". The current top corporate tax rate is 35% of profits
The sCruz tax is 16% of all business income including profits minus business to business purchases...IOW, s/he would pay 16% tax on the money needed to keep the business afloat before it's even spent including employee's wages etc.
The small business owner's take home is from his profit. S/he would pay 16% through the business and then 10% again on the same profit for personal income.
The sCruz tax is paying for the eliminated corporate tax off the backs of small business owners and their employees. It looks like some of Cruz's big money corporate crony's had their slimy hands in designing his tax plan.
The almost laughable sCruz tax would be a small business and jobs killer.
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