Related:
Ted Cruz Wants to Raise Taxes on Your Grandma
http://fortune.com/2016/02/02/ted-cruz-taxes/
Return the Fed to its proper role and all this becomes unnecessary.
L
so tempting.........
I like a FAIR tax.
I like a flat tax.
VAT is just non-stop stupid.
I do like the concept of a sales tax replacing income tax. I’m also a maker and seller of products. As such, I worry that a dramatic increase in price will dramatically reduce sales and I do not want to become an unpaid tax collector.
Another invisible tax! How clever!
What an moronic idea!
Cruz supporters seem oblivious, or in denial, about what a horrible idea their candidate is supporting vis a vis taxation. An insidious VAT tax, on top of an income tax, is one of the few ways you could actually make our horrible, stupid tax system even worse.
Beats the hell out of Trump raising taxes.
Still not seeing how it’s a VAT... I think some media jackal glomed on to the rightful negativity surrounding the VAT and are now misusing the term to sway the vote...
People either don’t know what they’re talking about or do know and are being political.
There is a tax on business receipts less wage and purchases, described as a tax on business operating income.
There is also a tax on wages above a generous zero bracket.
For about half of Americans (the ones who don’t pay income taxes), there is a big reduction of taxes since they won’t pay the S.S. payroll tax. This will more than off-set the increase in prices due to the tax on business.
For the other half of Americans (the ones who do pay income taxes), the main benefit is that the income tax will be much more simple, apply to earned income above the zero bracket but at one relatively low rate. There will be NO tax at the individual level on “unearned income,” NO capital gains tax, NO estate tax, and NO alternative minimum tax.
Tax simplification (lowering the rates in conjunction with reducing the deductions) is thought to reduce the deficit by about $800 million per year EVEN IF you don’t change the average effective tax rate. The savings comes from reduced cost of administering and complying with the tax code.
But there are dynamic effects as well. Ending corporations and rich individuals leaving the country so as to avoid our high tax rates, restoring the incentive to work for the lower middle class, and putting the country on a path to a balanced budget.
There is a long list of issues concerning the transition to such a very different tax system. I’m not going to belittle these traditional issues but the detail work needed to address the transition is not appropriate to a campaign. In a campaign, you lay out broad goals.
BTW there are a lot of similarities among the flat tax, the fair tax and this proposal, as well as some differences. And, Jeff Sessions has a very nice proposal that would provide a huge step to a true flat tax/fair tax combo such as Cruz and Rand Paul have proposed. We can and should enact Sessions’ proposal immediately.
I’ll agree it’s an offensive word to most of civilization but in all honesty it means wimp, sissy in this context.
Value Added Tax plus 50-70% salary taxation.... European inspired socialism at its finest.
I’m not at all sure Cruz wants a VAT tax, but if he wINS and worked with Congress to pass one, he might serve out one term.
They suspend one tax in order to get VAT, then like a dandelion, it comes back and productive, hard working people are again penalized with a smaller pie so “others can have more.”
As so many here are shouting out loud: THE FEDERAL GOV. HAS A SPENDING PROBLEM, not a revenue problem.
Whatever they get, they spend double. Why should we trust them when they promise “lower taxes” in order to raise taxes?
American Enterprise Institute... Not familiar with them.
What’s their position on importing Mexican hookers?
VAT is a Vulgar Word.
I really don’t like the VAT proposal. It will add layers of bureaucratic paperwork for businesses, and in a short
period of time the gov’t will declare that they need to raise income taxes in addition to the VAT.
The AEI is hardly anti-conservative. Their tax analysis is usually spot on
Worries me that Cruz thinks that he can tax businesses. It is well known that businesses do not pay taxes their customers do.
The smart guy fails here
All you need to know about the sCruz tax plan is his major donor Robert Mercer, a hedge fund manager owes $10 to $15 BILLION in taxes...YES BILLION. Would he like to shift that burden on to you? YOU BET!