Why Marco Rubio and Ted Cruz's Tax Plans Generate More Growth than Donald Trump's

Tax Foundation ^ | 2/26/2016 | Alan Cole

[JediJones]

...our model shows more growth from the Rubio and Cruz plans than the Trump plan, even though Trump proposed a larger cut:

While Donald Trump largely opted for big rate reductions across the board, Rubio and Cruz made improvements to the structure of taxes, while cutting taxes by less overall.

Senators Rubio and Cruz both put thought into the nature of the taxes that businesses pay. They noticed that the current way businesses are asked to calculate taxes creates a bias in the code. When a business builds something new, like, say, a new industrial lathe, that decision actually has a higher tax burden, on net, than simply disbursing the money to shareholders. That’s bad news for machinists, who would much rather that they had new and better tools with which to do their jobs.

Rubio (through modifications of the corporate income tax) and Cruz (through the total conversion of corporate income taxes to his business flat tax) both fix this problem by making the full amount of money spent on the lathe deductible from taxable income.

In contrast, Trump did little to change the domestic corporate tax system, and merely lowered its rate. This policy has its benefits, including the benefit of growth, but it substantially reduces revenue.

...the senators pay attention to the details of the tax base, and try to fix incentive problems that the tax base creates. Mr. Trump mostly lowered rates.

America under the Marco Rubio or Ted Cruz tax plan would simply have more lathes and buildings and trucks, and people would be more productive and have higher incomes because of it.

[Java4Jay]

Given the cards we’ve been dealt, I think this is the best way forward.

[EternalVigilance]

Given the cards we’ve been dealt, I think this is the best way forward.

I'm tired of liberals and unprincipled political hacks always getting to do the dealing.

It's a totally rigged game, man.

[oldvirginian]

So if I don’t support Trump over anyone else, I am GOPe?

Then, in your world I am the enemy.
I support Cruz so I must be establishment.
Whatever.

Tell me, why can’t Trump talk about policy in detail?
Don’t give the “go to his website garbage”.
Why can’t he tell us the details of the policy his website contains?
Because in his world if he doesn’t say it, he can’t be pinned down with it.

Maybe he doesn’t know the details?
Maybe he hired the best policy wonks he could find.
A person, businessman or politician, who isn’t familiar with the little details can be led astray and the country will suffer for his lack of knowledge.

Take the Trump Taj Mahal casino.
It was YUUGGGEE.
It was glorious.
He spared no expense.

The Donald hired the three best people in the casino business to run the thing.
Unfortunately all three were in the same helicopter when it decided to slam into the ground.
No survivors.
Trump was left with his finger up his butt and his “package” flapping in the wind.
No one else had any knowledge of how to run the thing and no one else in the industry wanted to touch it.
It dang near ended Trump’s career.
He had to basically sell everything, his yacht, plane and other properties to stay afloat.
All because he didn’t know the details of the casino business.

Grandiose statements, cool catch phrases and mudslinging may win him the election.
Lack of knowledge of the details may doom the country.

[oldvirginian]

Yeah, the “proper stench” is right.
Think about it.
If the police can’t go into an embassy to arrest someone because it is foreign soil, then anything can happen.
Remember that wikilinks guy?
He fled to an embassy in England because he was facing rape changes back home.
It’s been years and I think he’s still in that embassy.

I know of no law that states that only one building or location can be a legal embassy.

[StoneWall Brigade]

I disagree. Senator, Ted Cruz has always been on the inside. He’s manliy used legislative loop, holes. To make it apper he’s an outsider his Op-ed with Paul Ryan, on TPA/TPP add his votes. On along with it and his vote, on Corker Amendment. Is certainly not someone who is of outside constitutional conservative, limited government. Plus, his wife, being apart. Of the CFR which clearly advocates, one world government, is not something of an outsider. His support for the socialist New deal policies. Is another concern I don’t care for his Judicial supremacist views. Are dangerous and a disaster for our Constitutional Republic, as his views. On Abortion and as is his pro choice State’s rights view on Marriage. I’ve looked at his, donor’s it’s not something of an outsider. Clearly, he’ll fold and sell out should he win the Presidency, I am tired of Lawyer-professional politicians, who Compromise. And, sell out I want a citzen to represent me and ask what gives the government right to ...” I want a person who will uphold the fundamental constitutional oath of office, and restore my God given unalienable rights. And, Liberties. That have been taken away from me I want a Presidential candidate, who Will protect the Unborn child, and hold firm. The true Value of Marriage, also I want someone who will respect and honor our Alliance, with Israel, and last and I want Christian-Judeo, Values restored. And, Christian reveal be brought back I don’t not now or ever it’s any of the Republican candidate’s running for President. I’ve found the person who will and I strongly supprt him