That’s about the only way you could make our tax system worse than it already is.
A VAT is no worse than any other tax. The European implementation of the VAT is criticized because it was imposed on top of the already-existing income tax.
Both of these plans eliminate the corporate income tax. The criticisms of a VAT here are groundless.
“Both of these plans eliminate the corporate income tax. The criticisms of a VAT here are groundless.”
I thought Cruz’s plan had a fairly high business tax? That’s how he funds having a 10% flat tax on individuals. Rand’s I don’t ever remember... something about everyone having skin in the game.
It is worse. It’s hidden. It’s insidious.
Both of these plans eliminate the corporate income tax.I don't know about Rand Paul's tax but the sCruz tax pays for the "eliminated" corporate income tax with a brand new 16% tax called a "business tax" on all businesses.
The new "business tax" has no defined profits because EVERYTHING is taxed including wages paid AKA gross receipts tax.
A small business owner would have to pay 16% of the business gross then pay 10% on top of that for his/her earnings when s/he files individual. Likewise the employee. The business pays 16% of the wages paid, then the employee pays 10% again when/she files. But don't worry, you can itemize your deductions...on a postcard and no IRS to police it either.
The sCruz tax, probably written by his crony capitalist donors, is a small business and jobs killer...He's too stupid to know it.