I hate the idea.
I will not support any new tax or new tax idea or proposal until the income tax is already gone forever, as in for real outta here NO BS.
Sorry, no trust, don’t care what your name is.
You will have to trust me when I tell you that I’ll allow you to institute another tax system once the income tax is gone.
Oh and, if the income tax is done away with and I still don’t let you institute another tax system, then you will know what it’s like to be lied to and stabbed in the back.
Just sayin’.
NO VAT; NOT EVER !
Here is a “spaghetti on the wall idea”
I think there should be one fundamental tax rate “constitutional ceiling” that all other taxes must be set to with no more than 4 total categories.
For instance: Ceiling of 20% (Ceiling is set in the constitution to say 20% )
So you could have a 5% income tax, a 5% business tax, a 5% tariff (which is a tax) and a 5% sales tax.
Or you could have
a 10% income tax, a 1% business tax, a 5% tariff and a 1% sales tax. = total 17%
Or
a 10% income tax, 0% business tax, a 0% tariff and a 0% sales tax. = total 10%
That way if you want to tax income more, you cannot tax more than 20% total, but in order to increase ONE tax category you have to DECREASE another one!
Also limit the complete yearly spending of the fed gov to have a ceiling of say 10% of the economy output and NO MORE, unless congress declares war in which they have to renew the war declaration every year and it bumps it up to 20% total . If they need more money for the war they can only increase war spending by 5% per month (max of 25% total) and they have to do with a 3/4 vote in both houses EVERY MONTH and it expires at the end of each month!
Businesses should not pay any taxes. That rules out a VAT.
There should be no income tax, because unless we get rid of the 16th Amendment and the income tax, the “progressive” income tax will come back. The Catholic bishops and other Marxist religious groups will never stop agitating for it.
We should have the FAIR Tax—which is collected on the purchase price of NEW consumer goods. USED consumer goods are not taxed. Services are not taxed. Incomes are not taxed.
A VAT is one of the few alternatives to the present stupid income tax system that would actually be WORSE.
A VERY bad idea from Senators Rand Paul and Ted Cruz.
Mr. Goldman Sachs strikes again. I wasn’t aware of this proposal at all.
Cruz totally masks this on his website, referring instead simply to a 16%, as opposed to 355, BUSINESS TAX RATE.
https://www.tedcruz.org/tax_plan/
I have a much better idea; how about abolishing all taxes on business altogether?
Businesses don’t pay taxes anyway they collect taxes by passing on the cost of those taxes to their customers.
Taxing businesses an insidious process in which politicians extort huge amounts of campaign cash from corporation. In the process lawyers, lobbyist and accounting firms make huge amounts of money either trying to avoid taxes or ensuring the correct amount of taxes are paid.
In the process the market is distorted and investments are made in places that in absence of perverted tax incentives they would not be made.
Zero out corporate income taxes and investment in the United States would skyrocket and the economy would break records in growth.
A VAT would simply create a growth economy for lawyers and accountants. Growth would be discouraged for years as corporations learned to deal with the new regulations and attempted to find ways to minimize their exposure to the new taxes.
The only way I would trust Washington with a VAT unless we had an Amendment abolishing the income tax and authorizing the VAT. Without an amendment we would end up with both and taxes and spending would explode.
Unless you eliminate income tax, you are simply adding a new tax. Future administrations will adjust rates higher on two taxes.
Cruz should know that you must eliminate one.
And if the income tax was scaled back it would only be temporary.
Fuel is required for every stage of a product's manufacture, and I don't believe anyone outside of agriculture gets any break on fuel taxes, so the cost of those taxes accumulate at every stage.