Posted on 01/15/2016 6:58:15 AM PST by Kaslin
Tax reform is a key part of reviving our economy so that the 21st century is another American century. That's why Senator Marco Rubio put together a tax reform plan that would generate economic growth, an employment boom, and rising wages for American workers.
The Rubio tax plan would make the economy grow twice as fast as it has this century because it would lower taxes on hard-working families, allowing them to take home more of what they earn so they can use it to provide a better future for their children. It would reduce taxes on saving and investment, the lifeblood of a thriving economy, so that businesses can create more jobs and pay their workers more. And it would make the way we tax our businesses competitive with other nations that are outcompeting us today for investment and jobs.
The Rubio tax plan safely achieves these enormous benefits while creating no risk to the economy or to our shared goal of a limited government.
The same cannot be said of Senator Ted Cruz's tax plan. Sen. Cruz's plan would threaten the stability of the economy and help liberals achieve their dreams of a bigger government by creating a value-added tax, or VAT.
You are probably unfamiliar with a VAT because it is mostly a tax foreign countries use, especially in Europe. European countries use their VATs to levy high taxes on the middle class so they can fund their enormous governments. As leading anti-tax crusader Grover Norquist is fond of saying, "VAT is a French word for big government."
Liberals have wanted a VAT for years because of its ability to raise large amount of revenue unsuspectingly from the middle class. They want that revenue to grow government even more than they already have.
Cruz argues that his plan is not a VAT because businesses would pay it, rather than it being collected when families make purchases like is done in Europe. Don't be fooled. Cruz's VAT and European VATs are economically identical, and his entails the same substantial threat of growing government.
The VAT raises a whopping 71 percent of all the revenue in Cruz's plan. It does so because it applies to an enormous tax base, including every dollar of all Americans' wages. Because of this, a small increase in the rate results in a huge tax increase, while being largely hidden from the unsuspecting public.
That is why Sen. Cruz's VAT is such a risky venture. It is a liberal's dream mechanism for getting the revenue they need to transform our government into a European one. Once they get ahold of it, the sky is the limit for taxes.
Families will bear a large burden of the VAT. Sen. Cruz likes to say that a family of four making less than $36,000 a year would pay no tax under his plan. But that is untrue. Under his VAT, they will pay a 16 percent tax on every dollar they earn. That is more than they pay in payroll taxes today. That family of four would pay nearly $6,000 in tax under Cruz's dangerous VAT.
A VAT would be economically destabilizing because it would create an enormous amount of uncertainty. Businesses thrive on consistency and predictability, and until they understood how the VAT would impact them, they would hunker down and put off major decisions, much like they have done under Obamacare and other big-government ventures during the Obama years. Families would pay the price with slower economic growth and less opportunity.
The IRS needs a major overhaul. It has lost the faith of the American people, and rightfully so, because of its shameful targeting of conservative groups to help Democrats win elections. Sen. Cruz says his plan would abolish the IRS. But that is inconsistent with his VAT, which would be difficult to enforce. How will he collect the massive amounts of revenue his will raise with no agency to enforce it?
VATs are way outside the mainstream of conservative economic thought for good reason. Cruz's support of a VAT is as troubling as his backing of an unsafe return to the gold standard. A reversion to the outdated gold standard would tank the economy. And if it were in place when his VAT went into effect, the two in tandem would necessitate a steep drop in everyone's earnings. Not to mention that it would help China and Russia, the world's leading gold suppliers.
The economy is still struggling under the weight of President Obama's failed ideology. Now is the worst time to threaten it with a hazardous tax like the VAT. Marco Rubio's plan carries none of the associated risk and delivers more growth to help America's working families. When it comes to taxes, the conservative choice couldn't be clearer.
Maybe since Flat and Vat both end with "at" Marco Rubio is somewhat confused?
Yup, lil dancing boots must be confused.
You're the one who first gave their opinion on Ted's plan. So when I give my opinion, you lecture me about people deciding for themselves.
LOL.
Whatever.
When did he admit that? I know Rubio tried to say that was his plan, but I distinctly remember Cruz saying that Rubio was incorrect/lying.
CRUZ: Well, Marco has been floating this attack for a few weeks now, but the problem is, the business flat tax in my proposal is not a vat. A vat is imposed as a sales tax when you buy a good.
This is a business flat tax. It is imposed on business and a critical piece that Marco seems to be missing is that this 16 percent business flat tax enables us to eliminate the corporate income tax. It goes away. It enables us to eliminate the death tax.
If you’re a farmer, if you’re a rancher, if you are small business owner, the death tax is gone. We eliminate the payroll tax, we eliminate the Obamacare taxes. And listen, there is a real difference between Marco’s tax plan and mine.
Mine gives every American a simple, flat tax of 10 percent. Marco’s top tax rate is 35 percent. My tax plan enables you to fill out your taxes on a postcard so we can abolish the IRS. Marco leaves the IRS code in with all of the complexity. We need to break the Washington cartel, and the only way to do it is to end all the subsidies and all...
(BELL RINGS)
... the mandates and have a simple flat tax. The final observation, invoked Ronald Reagan. I would note that Art Laffer, Ronald Reagan’s chief economic adviser, has written publicly, that my simple flat tax is the best tax plan of any of the individuals on this stage cause it produces economic growth, it raises wages and it helps everyone from the very poorest to the very richest.
No, I simply described it as a hidden tax plan and said I was glad it was getting attention.
Your squawking about it being less hidden than other plans is an opinion...but Cruz's plan is by definition a hidden tax whether you like it or not.
Those of us who paid full weight of employment and income taxes at the Carter rates back in the day and who now subsist on savings (which don't earn anything because of Fed/banksters' zero-interest-rate policy) and Social Security will take a new weight at what, 39% or whatever the fashionable rate is in Europe? so that you can get your income taxes reduced. What a deal, thanks bud.
No to Rubio.
No to Ted Cruz and his income tax with a VAT on top.
Yes, how selfish of me to want something that would benefit everyone. Your rash judgement isn’t justified, I’d only want it as PART of a tax system change and nothing close to 39% (where on earth did you get that number? it’s nothing close to reality). Eliminate income tax, lower the corp tax rate (to a FLAT tax for all), have a small consumption tax - you’d end up with lower costs on good and services while retaining the tax receipts at the fed level.
...but so long as you’re just fine with the government deciding how much, of my money, I can keep you’re part of the problem. Let’s just keep the system we have right? Thanks bud.
Old news, but it sure reeks of globalism and ‘establishment’ to me!
‘Cruz’s VAT and European VATs are economically identical, and his entails the same substantial threat of growing government.’
The VAT: Coming Soon To A Campaign Stop Near You (Cruz Tax Plan)
http://www.freerepublic.com/focus/f-news/3394643/posts
American Enterprise Institute | February 8 | Alan D. Viard
‘Moreover, their proposed VATs would be largely invisible to the public because they would not be listed on customer receipts or pay stubs ...’
Hidden taxes are the worst.
thanks AW!M.
http://www.freerepublic.com/tag/flattax/index?tab=articles
http://www.freerepublic.com/tag/fairtax/index?tab=articles
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