Posted on 11/02/2015 2:04:51 PM PST by gwgn02
Ted Cruz spent a fair amount of time discussing his new tax plan in detail with Larry Kudlow on his radio show today.
The tax discussion begins around the 6 minute mark so skip ahead if you don’t have a ton of time:
Ted Cruz spent a fair amount of time discussing his new tax plan in detail with Larry Kudlow on his radio show today.
The tax discussion begins around the 6 minute mark so skip ahead if you don’t have a ton of time:
Read more: http://therightscoop.com/ted-cruz-discusses-his-new-simple-flat-tax-plan-with-cnbcs-larry-kudlow/#ixzz3qNHLYve6
Under the Simple Flat Tax, the current seven rates of personal income tax will collapse into a single low rate of 10 percent. For a family of four, the first $36,000 will be tax-free. The Child Tax Credit will remain in place, and the Simple Flat Tax Plan expands and modernizes the Earned Income Tax Credit with greater anti-fraud and pro-marriage reforms. As a result, the Simple Flat Tax will ensure that low- and middle-income Americans have greater opportunities – not only through minimal taxes, but also through better, high-paying jobs that the Simple Flat Tax will generate. Under the plan, deductions for charitable contributions and mortgage interest payments are preserved.
The IRS will cease to exist as we know it, there will be zero targeting of individuals based on their faith or political beliefs, and there will be no way for thousands of agents to manipulate the system.
For businesses, the corporate income tax will be eliminated. It will be replaced by a simple Business Flat Tax at a single 16 percent rate. The current payroll tax system will be abolished, while maintaining full funding for Social Security and Medicare.
The convoluted tax code will be replaced with new rules of the game – so simple, in fact, that individuals and families could file their taxes on a postcard or phone app. The Death Tax will be eliminated. The Alternative Minimum Tax will be eliminated. The tax on profits earned abroad will be eliminated. And of course, the Obamacare taxes will be eliminated. Also gone will be the unending loopholes in the current code, the stacks of depreciation schedules for businesses, and the multi-tiered rates on income and investments. Under the Simple Flat Tax, the Internet remains free from taxes.
The results will be truly dramatic. According to the well-respected Tax Foundation, the Simple Flat Tax will deliver an economic boost of tremendous magnitude. In the first decade, the Simple Flat Tax will:
Boost Gross Domestic Product by 13.9 percent above what is currently projected.
Increase wages by 12.2 percent.
Create 4,861,000 additional jobs.
Not good enough.
Repeal the 16th Amendment. I you don’t, the “progressive” tax structure will coming roaring back.
I can’t get the video. Did anyone talk about the fact that the business tax looks a lotIke a VAT?
We have to start somewhere. This will do until the amendment process gets underway to undo the 16th Amendment to the Constitution of the USA.
Ping.
Sorry Cruz, but I like Trump’s tax plan better.
I’m with you. This can be done via legislation; but in parallel we forge forward with the Article V Convention to deal with the Constitutional issues.
So the corporate income tax will be replaced by a tax on corporate income?
I prefer Cruz’, with reservations.
I thought so, too. But, if you look at Cruz's website, it says the business tax is simply (revenue - expenses) * 16%.
I think he is proposing eliminations of all kinds of other tax preferences in the corporate income tax regulations. But, it's still an "income tax", where income=revenue-expenses.
The complicated, hairball US tax code is a huge source of political corruption. Like all government corruption, it favors the wealthy at the expensive of the middle class, it favors leftists who love social-engineering using all the powers of government, and it favors the entrenched political class who gains from the lobbying and back-room dealmaking.
It MUST be simplified as much as possible. FLAT tax, nearly zero deductions
I like Cruz and Trump plans, even though they’re different.
I would prefer Trump’s if he taxed everyone. Even the lowest incomes. Even if it’s a measly $25. Everyone pays. Everyone shares the burden.
Larry Kudlow would disagree with you- about Ted’s tax plan Kudlow said, “you’re promoting, probably the best, most competitive tax system”
Cruz2016~
You don’t need to run for president to pass an amendment. The presidency is irrelevant to the matter.
Trump’s plan was plagiarized from Jeb’s.
The problem: it's unlikely the 10% flat tax, as proposed, can replace the individual income tax, much less also replace the payroll taxes (which are 15.4% combined, on the first $118,000 of wage income).
I've done the math: With a simple deduction of about $36,000 per household, we would need a 21% flat tax rate on the income above that just to replace current income tax revenues.
This isn't hypothetical. I've used the IRS's own numbers, and chose $36,000 for the standard deduction because it would eliminate individual income taxes completely for the bottom 50%.
So, Cruz's 10% plan will fall short by about 50% even BEFORE the elimination of the payroll tax was instituted.
There's simply no way it can work, as proposed.
Here’s my reservation: it depends on the details. The more restrictions on deductions, the closer it is to a VAT. The more deductions allowed, the closer to an income tax.
But if it’s just an income tax, it’s probably not going to raise enough revenue to come close to revenue neutral, which, on a dynamic basis he claims to come close.
Will wages be deductible? Depreciation? How about treatment of proprietorships? S corps?
Lots of questions.
The best plan by far. Not one other candidate has a better plan, in fact, some others actually claim to be planning to cut taxes, when you study their plan, it is a tax increase. I don’t want to name names, but his initials are Donald Trump.
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