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.
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.
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.