Posted on 04/18/2016 5:31:33 AM PDT by Hojczyk
Newsmax Finance Insider and CNBC senior contributor Larry Kudlow says he prefers Donald Trump's tax plan over Ted Cruz's strategy.
“All these plans have to be tweaked. Trump I like, Cruz I like,” he says, adding that both battle plans are “pro-growth.”
But Kudlow says Trump’s strategy gains the edge.
“Cruz has a value-added tax inside his plan. It comes down very heavily on businesses and very heavily on workers,” Kudlow said.
“I have for many months endorsed Trump’s tax-cut plan," Kudlow said in a series of appearances on CNBC late last week. "In particular, I like his business-tax-cut strategy, which includes a 15 percent rate for large C-corps and small S-corps along with easier repatriation and cash-expensing write-offs for new business investment," he said.
"I think it’s an excellent plan that would substantially grow the American economy and bring trillions of dollars in overseas capital back to the U.S., which in turn would foster millions of new jobs and faster growth."
Trump’s tax plan would significantly reduce marginal tax rates on individuals and businesses and increase standard deduction amounts, Yahoo Finance explained.
"While Trump has incited anger around the fact that the United States is poor, his plan would reduce federal revenues by about $10 trillion over its first decade, according to the Tax Policy Center, a non-partisan research outfit, increasing the national debt by nearly 80% of gross domestic product by 2036," Yahoo reported.
(Excerpt) Read more at newsmax.com ...
Good for Kudlow!! He gets it...along with supply-side economics.
He needs to run for Senator, in CT. I’ve been telling him that, for years ;-)
“Cruz has a value-added tax inside his plan”
And we all know how well that has worked for France.
The creation of a new tax is the last thing we need.
Why hasn’t Raphael dropped out of the race yet?
That's like saying a 10% sales commission at a company will reduce revenues by 10% (and hurt the bottom line even more).
These linear thinkers (probably accountants--though not all accountants are linear thinkers) miss the dynamic impact of such a tax plan on the economy.
They also do not anticipate any budget cuts
I hope the Cruz guys read this - they have been quick to tout the articles where others have preferred Cruz’s plan - and claimed it made more room for growth because it generated more income (taxes) for the government.....
The European VAT is added to the income tax, Cruz’s REPLACES the income tax.
Do you want to reduce the power of the IRS or not? Trump’s plan is more of the same.
Right.
yeah, he was SPOT ON when he said FORD was a TERRIBLE Buy at a buck!!!!
what did it go to within a year? 15?
that’s one of dozens. he’s a talking head #######.
I’m okay with replacing the income tax with a VAT. I’m not okay with adding a “small” new tax to our existing range of taxes. The question: Can President Cruz (I think President Trump is much more likely, but let’s go with the hypothetical) push a VAT phase in and income tax phase out through Congress?
I don’t think Congress would go for it. All Democrats would oppose it, both because they can claim income tax repeal helps “the rich” the most (true, since the rich pay the most income tax, but the rich would also pay the most VAT), and because losing the social engineering of the tax code would cut their power to manipulate our lives. The republicans should only oppose the change because of the second reason, but that is enough. Cruz would need an impressive mandate to force both parties to support his income tax repeal, even if VAT is a better idea.
The Tax Policy Center if full of crop. When the economy is stimulated, tax revenues will increase because business revenues are increasing.
IIRC Kudlow crafted Trump’s plan, so it would be astonishing if he did not endorse his own work.
Supply side economics should be called consumer-centered economics because ultimately consumers will enjoy lower prices and more jobs.
He will be mathematically eliminated tomorrow night.
The VAT is POISON.
It’s a way for Cruz/Globalists to raise taxes while pretending they’re giving us a tax cut.
Bernie paid an average income tax rate of less than 14% last year. Cruz’s VAT is 16%. That means that every human being in America, including babies, the retired, the unemployed, will be paying much more than 16% on everything they consume. I.e., a higher tax rate than Bernie Sanders pays on his substantial income.
BTW: The FAIR Tax is NOT a VAT, because businesses that produce capital goods and materials for other businesses DO NOT pay ANY tax. Only the purchasers of brand-new consumer goods pay the FAIR Tax.
Cruz DOES NOT get rid of the income tax. He reduces it to one bracket, ten percent.
But as long as the income tax and the 16th Amendment remain in existence, the “progressive” income tax WILL COME BACK, because ENVY never sleeps.
Music to my ears.
The Cruz plan will tax people not currently being taxed but Cruz also has detailed significant spending cuts to offset some of the reduced revenue. People not paying taxes now will likely not pay taxes under the Trump plan but he has detailed virtually no spending cuts to offset revenue reductions, relying instead on wildly optimistic growth projections. Both plans are works in progress and need a lot more fleshing out - especially in the area of spending cuts - before one can be called preferable to the other.
Or Trump and his supporters wildly inflate the effect his plan would have on the economy.
I agree with Larry. Cruz’s plan is not small business friendly.
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