Gone are the deductions when I need to buy new equipment or the depreciation of that equipment as I use it. Along with that goes all incentive to buy new equipment and the manufacturing base that goes with it.
Cruz’s tax plan sucks.
It is a VAT.
It's nice to see a criticism of Cruz based on his positions, rather than on his looks or on complete nonsense. That is the way FR is supposed to be, so thank you!
I disagree with your critique. A VAT would be a huge step in the right direction if it completely replaced the income tax. I overall prefer the resulting tax structure, since it removes all the perverse incentives to hide income, shift income, and otherwise move income around to where it's taxed the least instead of just a focus on generating income. We lose those old deductions, but we gain a whole lot of flexibility. Perhaps I'm wrong, and I haven't looked into it much, since I don't believe either party in Congress would give up its social engineering power from the income tax code. Still, I like the idea of VAT so long as it completely replaces the income tax.