I liked the Trump plan, but Cruz’s plan is even better.
Wow, on the surface, best, most serious plan so far. I like it.
Oh yes they will. The justification given for progressive taxation has always been that a given percentage of their income hurts the poor more than it hurts the wealthy, so the wealthy should pay more. The left will say a flat tax is an assault on the poor.
Trump’s plan and Cruz’ plan rely on the 16th Amendment being in effect. Because of this they are both doomed. Why?
The 16th Amendment permits future Congresses to do whatever they want. After Trump/Cruz are gone, the monster will be back out of the closet. It always comes back. The 16th Amendment guarantees a flat tax can be monkeyed with; any flat tax will NEVER STAY FLAT.
The original income tax code following the ratification of the 16th WAS 14 PAGES LONG and affected less than 2% of the working public. That’s how it got snuck in. Every income tax starts off at a low-low rate and then unleashes Hell, and that’s what happened in 1913-1914. Just a few years ago the father of Bill Gates III tried to introduce a state income tax to the State of Washington and lost the vote. Guess what the rate was that he proposed, 1%. Yeah, just a little ole 1% won’t do nobody any harm, yep. The income-taxers are liars. All of their plans may have good intentions, but we know about that road and where it leads.
Trump’s plan will boost the economy as will Cruz’, and both should be more effective that Reagan’s. But it’s only temporary. Neither will touch a vision for a consumption tax because it is considered too far afield of campaign reality. Once they are elected they should consider establishing economic regions that operate only on a consumption tax and then see how it shakes out. Then their successors will have a foundational basis for repealing the 16th and going full consumption.
The only saving grace of Cruz’ plan that is superior to Trump’s plan is CRUZ PROPOSES TO ELIMINATE THE IRS.
Why is this important? Because it allows for a consumption tax to be implemented coupled with a repeal of the 16th. A consumption tax is far superior in every aspect, every aspect to any income tax.
Trump would do well to have his people consider consumption only/income tax-free economic zones for trial. That would be historic. It would be superior to the current Cruz plan because it allows data to be gathered and used in a comparison report. Cruz could also consider doing the same thing and he should do it.
But what did the WSJ say?
/sarc
I don’t understand how Cruz’s corporate tax would work. Suppose a labor-intensive business buys $2 million worth of supplies from other businesses, pays $10 million in wages and other costs (interest and whatever), and has gross receipts of $13 million. Under current law they pay taxes on the net profit of $1 million. Cruz’s plan is for a tax of 16% on gross receipts, but that’s not counting purchases from other businesses, so the taxable receipts is the $13 million total minus the $2 million purchases, leaving $11 million taxable. 16% of $11 million is $1.76 million. Doesn’t this turn a profitable business into a money-loser?
Capital gains taxes....are just legal stealing. Government does nothing...they have no risk, no skin in the game..and if I make $10k they take 38%
If I win the lottery...they take 33% at the very least. They did NOTHING for that money....
And then they turn around and give that money away...and our countries debt is killing us?
Wait’ why can’t the greedy, evil, 1 % who own the country pay all the taxes...?
(Libtard hat off)
I think they need to check their math. Raising $25.4 trillion over 10 years is $2.54 trillion per year. A 16% tax rate means that they would need a corporate gross income of almost $16 trillion. That's larger than the total GNP.