Posted on 02/08/2016 7:44:14 PM PST by Helicondelta
Two Republican presidential candidates -- Sens. Ted Cruz, R-Texas, and Rand Paul, R-Ky. -- have proposed replacing much of the federal tax system with a VAT. Cruz's proposed VAT would have a 16 percent tax-inclusive rate, and Paul's proposed VAT would have a 14.5 percent tax-inclusive rate. Both VATs would be administered through the subtraction method rather than the credit invoice method used by most countries with VATs.
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The biggest problem with the Cruz and Paul plans is their pronounced lack of tax transparency. The senators have consistently described their proposed levies as business taxes rather than VATs and have underplayed or denied the burden that the VATs would place on workers. Moreover, their proposed VATs would be largely invisible to the public because they would not be listed on customer receipts or pay stubs.
The Cruz and Paul plans would also repeal the payroll and self-employment taxes that are earmarked to finance Social Security and Medicare Part A. The repeal would have problematic implications, which Cruz and Paul have not addressed, for Social Security's budgetary status and the design of the Social Security benefit formula.
(Excerpt) Read more at aei.org ...
Congrats!
Thanks!
Looks like I may have about 6 months before I have to apply at Walmart.
I don’t see your name on any ballot
I think I want to ride a tractor at a golf course. But what about winter?
Absolutely!
There was an excise tax on telephone long-distance service that was imposed to help pay for the Spanish-American war in 1898. It was finally repealed in 2006.
So you can't say it never happens. /facepalm
I’m in Florida. Maybe a few weeks cool enough for a tractor ride but summer is killer. Thought about scuba for golf balls but gators.....nope! Walmart (out of garden center) is at least air conditioned.
Here is what Trump told Bloomberg News back in August:
Donald Trump seeks higher taxes on rich, lower taxes on middle class
Him and Bernie Sanders both.
The following are the specific facts of Trump's tax plan from his web site.
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Trump has said repeatedly: "I would let people who are making hundreds of millions of dollars a year pay some tax, because right now, they're paying very little tax. I think it's outrageous."
Are you making hundreds of millions of dollars?
So basically, I shouldn’t believe what Trump says. Right?
Your implication was he was raising taxes across the board which is not true. Have a nice day.
Trump’s plan is 15% corporate. That undercuts China’s 25% corporate tax.
I’d rather have the ‘fair tax’, but Trump’s is MUCH better than this dangerous euro-style VAT.
The VAT in Ted Cruz’s Tax Plan is a Threat to Limited Government and the Economy [January]
http://www.freerepublic.com/focus/news/3384004/posts
‘Cruz’s VAT and European VATs are economically identical, and his entails the same substantial threat of growing government.’
A VAT, as I understand it, is a multi-tax on all goods sold. A business buys iron ore? Then the smelting plant is taxed. Then the screw factory gets screwed. Then each layer of distribution gets taxed. Most if not all of the taxes are hidden.
A national sales tax is 100% visible.
Big difference.
The VAT is what hurts Europe’s economy. Link just above this post. FRegards ....
Agreed. I believe most honest people would prefer a fair/flat tax due to the inherent simplicity for the taxpayer and with that, the ability to downsize the IRS to cut expenses.
The government created this monster incrementally, and I believe Trump is going to change the process incrementally, taking baby steps, by compressing the tax tiers and eliminating useless, outdated exemptions and exceptions. This position will be generally accepted and should be able to be enacted in short order.
The next phase in Trump's plan will be proposing a fair/flat tax.
Cruz will propose any legislation that Lloyd Blankfein/Goldman Sachs ORDERS him to propose.
Trump tax plan overall is just fine.
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