You should re-read Sen. Cruz's tax proposal. "The tax will be based on revenues minus expenses such as equipment, computers, and other business investments."
That means that the tax gets paid at each step of the way as a product gets manufactured and moved to its ultimate retail sale, since each business along way pays 16% of their revenues minus their expenses to other businesses.
There is no cap, or minimum, so every self employed person providing a service would be paying 16% of their income on every dollar they earn. Once they get past the personal exemption they are paying at 26%. For many lower income self employed people they will actually pay more in taxes than they do now.
As you noted below, VATs are applied at every level of production or sales between different companies before we as end users get the total in our end when we purchase the final product like gasoline.
VATs are a progressive liberals wet dreams and real conservatives says hell no!
Below is your real world description of a VAT.
You should re-read Sen. Cruz’s tax proposal. “The tax will be based on revenues minus expenses such as equipment, computers, and other business investments.”
That means that the tax gets paid at each step of the way as a product gets manufactured and moved to its ultimate retail sale, since each business along way pays 16% of their revenues minus their expenses to other businesses.
There is no cap, or minimum, so every self employed person providing a service would be paying 16% of their income on every dollar they earn. Once they get past the personal exemption they are paying at 26%. For many lower income self employed people they will actually pay more in taxes than they do now.