So cutting business taxes from 35% to 16, ending capital gains taxes, etc... Not to mention a whole host of others... Is a bad thing?
In what alternate reality?
Look Cruz wanted to do something dramatic so he comes out with this pie in the sky tax plan that gives the individual a 10% tax rate. Since that’s too low he has to figure a plan to make up for it on the back of small business. So Cruz comes up with the equivalent of a VAT at 16% which is not a tax on profits but a tax on total receipts minus operating expenses EXCEPT wages. The business owner would have to pay 16% taxes on wage which are not a profit to him/her. In addition the business owner would be paying 16% on his/her own wages then another 10% when he/she files thieir own individual taxes. So a double tax on small business.
Cruz knows there is no will in Congress to do away with the IRS. Not gonna happen.
Trump’s 15% tax on profits is the better way to go to stimulate new jobs.