Currently employers pay ~7.5% in FIca and SS taxes
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You raise a good point. In addition to the impact of VAT affecting retired seniors, I’m interested in learning what Cruz’ plan is to fund the employer’s-share of payroll taxes.
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Cruz is using the 10% individual flat tax and the 16% business tax to replace all the federal and FiCA taxes. That is the point. I personally prefer the pure flat tax, but this plan is far stronger than most.
Detail here
https://www.tedcruz.org/tax_plan/
Yes, I'm especially interested in the effect on the seniors, but good point about the employer's-share of payroll taxes.
That's a chunk of change.
Thank you for the link, Leto. I did find one specific, “For a family of four, the first $36,000 will be tax-free.” But I didn’t find what the ‘first’ would be for a single or two-person senior household. Has Cruz stated the dollar figure the income/vat tax will raise to fund SS on an annual basis as opposed to what is being raised now? Would a 10% VAT tax translate to a 10% cut in SS buying power? If Cruz adds a VAT tax, would the ‘first $36,000’ actually result in a (vat) tax of $3,600 before income taxes? Lastly, under the caption, “provides opportunity,” third bullet point, the position stated is banks will collect the tax or part of the tax - will banks be able to hold and earn interest on this tax or do they turn it over, real-time -— and what triggers the bank to start garnishing tax from an accountholder in the first place? What perks do the banks receive to do the bookkeeping? Fortunately, Calif primary isn’t for a while, so there’s still time for Cruz to be a bit more specific about his tax plan before I vote.