Posted on 03/04/2016 11:59:11 PM PST by JediJones
Ted Cruz’s tax plan would cost less and stimulate the economy more than Donald Trump's, a recent analysis found.
“Of the two proposals that we have examined so far, those by Trump and Cruz, we find the Cruz proposal to be the better of the two,” said David Tuerck, executive director of the Beacon Hill Institute and senior fellow at the National Center for Policy Analysis. The free-market groups released a report comparing the economic effects of the tax plans from the two Republican presidential candidates.
Trump’s plan would lower the top individual income tax rate from 39.6 percent to 25 percent.
Cruz’s plan would impose a single individual income tax rate of 10 percent and would eliminate payroll taxes. He would replace the corporate income tax with a 16 percent business flat tax that is often seen as a value-added tax.
One reason why Cruz’s plan would lead to both less revenue loss and more economic efficiency than Trump’s plan is that it "goes further than the Trump plan toward turning the tax code into a tax on consumption,” the report said.
In 2026, Trump’s plan would lower government revenue by about $800 billion, while Cruz’s plan would only cost about $550 billion, according to the report.
Cruz’s plan would increase real gross domestic product (GDP) in 2026 by about 8 percent, while Trump’s plan would only increase real GDP by 2.61 percent, the analysis found.
Both plans would lead to a decline in public-sector jobs but an even larger increase in private-sector jobs. Total employment would increase in 2026 by 1.56 percent under Trump’s plan and by 2.74 percent under Cruz’s plan, according to the report.
Cruz’s plan would also increase business investment and personal income more than Trump’s plan would, the report found.
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Funny I googled vat tax ted cruz and it explains that even though Ted calls it something else it’s a VAT tax.
Thanks for playing, is that you Ted?
Funny the main criticism seems to be it would be hard to pass. SO we shouldn’t do the right thing since it would require effort?
Anyone thing ‘the wall’ will be easy to pass?
Is that a reason to not do it?
Why should he (or any Cruz supporter participate). All you get is mindless snark from the Trumpateers.
I agree.
The acronym VAT has achieved boogeyman status. Mostly because no sensible right winger wants to add a VAT on top of current high personal rates.
However, that is not what Cruz proposes.
He is being criticized both for having a too-low flat income tax AND for having a VAT. Where are all the people who rightly favor consumption-based taxation? It is the best type for Freedom lovers and IRS haters alike.
A movement toward consumption-based taxation is what Ted's plan represents. The article makes that clear. But I don't see the word consumption even mentioned in comments.
[And, yes, the Cruz tax plan is far superior to Trump’s liberal ideas of taxing the wealthy more...]
and removing more voters off the income tax rolls all together so they have no skin in the game.
[Why should he (or any Cruz supporter participate). All you get is mindless snark from the Trumpateers.]
Yep!
Thought not you Cruz frauds.
Remember his math. 16% on imports. Nothing on imports = 32% advantage for American businesses. Harvard lawyer math.
Neither does Trump.
All of you anti-Cruz folks who keep claiming his plan has a VAT tax in it either need to learn what a VAT tax actually is, or stop lying about the Cruz plan.
Because you lying fraud that is what a VAT is - a tax on the value added at each stage of production or exchange in business from raw material to sale. So, what you did was take someone's $900 per month social security income and put a 16% tax on it while cutting the tax rate on the super wealthy to 10%.
Oh and did BusTED tell you about the army of tax inspectors it will take to enforce his VAT. Instead of a once a year look at income and taxes it requires a look at every transaction - bought a spool of thread - did the store collect the 16% VAT? Or the Indian lunchwagon at the corner of Main and Elm.
Talk about full time employment for federal bureaucrats, you and Teddie have hit the bonanza of all federal employment schemes. TSA is a piker.
No. If it is God’s will that Cruz becomes POTUS, I’ll be the one yelling Hallelujah! and turning cartwheels....all while pushing 80 years of age. (Pushing 80 is enough exercize for anybody!)
But if it’s Trump; That will bless my sox off, too.
You are a fraud and a scammer. What Cruz proposes is exactly a VAT. Go google "Cruz VAT." It looks like a VAT and quacks like a VAT. He just doesn't call it a VAT. It's a bonanza for Heidi's paymasters.
"if that line don't fetch them, I don't know Arkansaw!" [Mark Twain - Huckleberry Finn - if anyone reads it any more].
Complete and utter horse manure.
You mean if I Google a phrase that presumes the conclusion it will take me somewhere that supports it? Knock me over with a feather. Try researching VAT tax without the bias.
Did you fall for the fraud or are you a knowing perpetrator of this fraud?
First a VAT (and we are assured by other Cruzzers that it is not actually a VAT if we only really knew what a VAT is) is a highly regressive tax. It hits those with the lowest incomes hardest.
Second, you are pushing an f'in insane oxymoronic logical swindleby exhalting production while deriding consumption. There is no point in production without consumption. What, are we going to take all that production and put it on barges and dump it in the ocean?
There is no freedom in that whatsoever.
I am not yet quite at the point where I will accuse Cruz of being a snake-oil salesman, although I am very disturbed by his "when I am commander in chief" comments. I do however call his supporters snake-oil salesmen.
In other words, Cruz's plan is even more regressive and oppressive than a European style VAT.
So in your deep research on what constitutes a VAT, what did you find so confusing about the phrase “at each step in the production,” or is the mere use of the word “tax” enough for you to conclude that the Cruz plan has one?
Nothing at all. Now explain how Cruz's 16% VAT is not a VAT.
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