Posted on 02/08/2016 7:00:17 PM PST by kiryandil
Cruz is NOT proposing a VAT tax. That is an outright lie.
The primary impact of replacing the income tax with a VAT-style sales tax is to capture all the underground and illegal income.
Characterizing it as ‘taxing Grandma’ is nothing but class warfare (consider the source here) and while there is a challenge with respect to retirees, I’m sure it can be worked through.
I’m in the Trump camp, and I like his plan, but this is one area where I like the Forbes/Cruz plan better.
Apparently, National Review thinks it's a VAT. They had another article on the same thing a few days later.
Still waiting to learn how a flat tax is a VAT...
It kind of makes sense, because businesses don't pay taxes - their customers pay the tax.
So... Not a VAT...
.
This is a story for fools.
There is nothing accurate anywhere in this screed.
.
So cutting business taxes from 35% to 16, ending capital gains taxes, etc... Not to mention a whole host of others... Is a bad thing?
In what alternate reality?
Thanks. You solved a small mystery for me.
I think it's April Ludgate slapping some guy.
Thank you for introducing me to that fiery wench, April Ludgate, whom I did not know existed before tonight, onona.
VAT is a job killer and doesn’t work at all. Look at Europe, to see what having a VAT and an income tax looks like.
It kind of makes sense, because businesses don't pay taxes - their customers pay the tax.
.
No VAT is proposed.
Currently employers pay ~7.5% in FIca and SS taxes
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You raise a good point. In addition to the impact of VAT affecting retired seniors, I’m interested in learning what Cruz’ plan is to fund the employer’s-share of payroll taxes.
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Cruz is using the 10% individual flat tax and the 16% business tax to replace all the federal and FiCA taxes. That is the point. I personally prefer the pure flat tax, but this plan is far stronger than most.
Detail here
https://www.tedcruz.org/tax_plan/
It's great fun :)
oh, wait.......
So. Is the current tax on businesses a VAT? If not, what is the difference that defines one as a business tax and the other a VAT. Please be specific...
Apparently, National Review thinks it's a VAT. They had another article on the same thing a few days later.
Apparently, "economists" are calling the Cruz flat business tax [16%?] a "VAT".
It kind of makes sense, because businesses don't pay taxes - their customers pay the tax.
Yep, neither side has a monopoly on questionable tactics (or hyperbole) here on FR. Doesn't make it right.
Apparently, National Review thinks it's a VAT. They had another article on the same thing a few days later.
Apparently, "economists" are calling the Cruz flat business tax [16%?] a "VAT".
It kind of makes sense, because businesses don't pay taxes - their customers pay the tax.
They can call it a doughnut, it doesn’t make it one.
A VAT is a tax on each stage of production. Hence the name; value added.
How is a tax on gross receipts, minus fica/etc, the same?
Answer: it isn’t.
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