Individuals still have deductions, small businesses filing as individuals still have expenses to deduct, and businesses subject to the 16% flat tax still have to calculate income net of cost of goods sold.
All of this has to be audited and verified by some agency. You can call it what you want but anyone saying you can eliminate the IRS is just playing to the credulous.
Individuals still have deductions, small businesses filing as individuals still have expenses to deduct, and businesses subject to the 16% flat tax still have to calculate income net of cost of goods sold.And don't forget you can do all that on a postcard. < /sarcasm>
BTW, the only business deductions are business to business purchases...Other than that it's a gross sales tax AKA VAT. Not even wages are deductible.
It would be a small business and jobs killer.
Imagine you have a business, you pay 16% tax on your gross sales, including profit. Then you file your individual return for the profit you earned and pay another 10% on the profit your business just paid 16% on. The sCruz IRS would have to hire more auditors just for that.
The sCruz tax is designed to have the eliminated corporate taxes paid for off the backs of small business.
If you don't think his big money business owners didn't have their slimey hands in that little tax scam, think again.