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 ...
This is talking about a flat tax rate, not a flat tax.
While I like many aspects of this plan, I would like it better if - like the personal income deduction of $36k - if the 16% business tax rate allowed for wages to be deducted out of the first $1MM of revenue.
But, still, we’re pretty crazy if we wouldn’t take this plan over the current byzantine tax code.
great!
Wow, I don’t think you understand. A small business owner would pay himself a salary. That would be a deduction against gross receipts so he would pay 10% versus 16%. On the personal tax side, he would qualify for the 36,000 family deduction as well.
Yes, this is a huge problem. I generally like Cruz, but anyone who suggests a VAT sets of really loud alarm bells.
I have to suspect he sees it as the only way to get the budget under control. I think he’s wrong.
But, still, we're pretty crazy if we wouldn't take this plan over the current byzantine tax code.This plan looks like it was written on cocktail napkins the night before the last debate.
Cruz loves legislation and debate.
This plan would be a legislative nightmare if it wasn't debated to it's rightful death.
What’s your preferred plan?
(And, also, for the record, I prefer eliminating ALL business taxes, as businesses really don’t GET taxed. It’s a cost that ultimately gets passed along to the consumer. So, I’d take a higher flat tax in favor of eliminating the obfuscation of “business taxes,” which are just an indirect tax on the consumer. In the end, though, I don’t even like flat taxes, but they are a step in the right direction. I’d rather see a flat tax on all consumption by individuals.)
The Cruz tax plan is a gross receipts tax including wages. That's why some people are calling it a VAT tax.
“How does a flat tax of 10% sound? And that only for income over $36.000?”
So, it’s not really “A 10% Flat Tax for Everybody”.
Exactly. It has to be for everybody. That’s why government is out of control, and you have two classes in the US. If everyone knew they were billing themselves for things that are ‘free’, they’d realize it isn’t free anymore.
Again, the stupid party at work.
the so called fair tax vs the so call flat tax should be combined. The fair tax...taxing goods and services, cept medical, medicine, food and capitol real estate, would wipe out the underground economy and make EVERYONE pay a little. Say 4 or 5%? Then 10% flat tax. No deductions.
If we just use the flat tax illegals and the underground economy get off free.
“Exactly. It has to be for everybody.”
And, I’ll take it one step further.
No more auto-deductions from your paycheck. No auto-bankdrafts. You write & mail a check to the IRS at the end of every month or quarter (or, present a postal money order to the local IRS office if you don’t have a checking account).
If you’re late, there’s a 10 percent penalty plus interest, until paid.
People should feel the “burn” every time they write that check.
I prefer eliminating ALL business taxes, as businesses really don’t GET taxed. It’s a cost that ultimately gets passed along to the consumer.If taxes aren't a cost burden to businesses then it would make more sense to tax only businesses and eliminate the individual tax altogether.
I think it is too progressive. Everyone should pay the same AMOUNT, say 500 dollars or some such, just like the Israelites of old.
bkmk
I love it. Perfect. The USG should bear the expense of dealing with taxes, not businesses. Same with unemployment, medicare, etc.
“Not only is it 10% flat rate for everyone....”
Not so. The article states.....a family of four doesn’t have to pay a dime to Washington D.C. over the first $36.000 they make.
No, that’s ludicrous. It’s a dishonest way to tax people since the real taxpayer still is the consumer, just through the tax being baked into the cost.
You still didn’t answer my question. Do you have an answer, or are you just whinging?
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