Why Ted Cruz’s VAT really is a VAT

American Enterprise Institute ^ | 01/15/16 | James Pethokoukis

[Hanna548]

Make no mistake here. Cruz is proposing a VAT add-on to the existing personal income tax system.

[HiTech RedNeck]

Oh never fear your wonderful Obama will shoot energy costs through the roof when it comes to things like electric power. Aren’t you proud that you can just hand-wave that away with peremptory gusto?

[HiTech RedNeck]

Oh wow you wailed and got an accurate criticism removed.

I’m talking about OTHER COSTS. Raised because of liberals. Please furnish math that proves what you so peremptorily claim.

[Vaquero]

I would welcome VAT. But that would be the ONLY federal tax Millionaires would pay more than they do now as they couldn’t buy that yacht, plane or Mercedes without paying the tax. No shelter for VAT.

[nclaurel]

Excellent article at the site will answer that for you. Good read.

[central_va]

Wage Stagnation in Nine Charts

Table 3. Union affiliation of employed wage and salary workers by occupation and industry

Manufacturing is at 10%.

[HiTech RedNeck]

So what is the executive view from 40,000 feet?

[HiTech RedNeck]

Oh look how unfair it is to the worker.

Nothing about how it looks to management.

If you think you can manage better, why aren’t you doing it?

Are you a crypto Bernie pal?

[I want the USA back]

It’s not a flat tax. It’s a flat tax rate, and it won’t happen. Adding a VAT to what we have is unacceptable. I don’t vote for anyone who proposes it.

[usconservative]

No business pays any tax. That cost is always passed on to the consumer. Always.

Bingo!

[HiTech RedNeck]

I mean ever consider that things that squeeze management will also squeeze labor as a knock-on consequence?

We can’t just have a one-party violin ensemble here playing poor pitiful me.

[nclaurel]

Well your bizarre question is beyond me this early. So have a great day. Coffee might help.

[central_va]

I am discussing facts. If you want socialism you should continue to ignore the facts at the ground level and those facts are wages have been actually declining for the last 20 years and private sector unionism is almost dead. I am not a big fan of unionism so latter is a good thing, the former a disaster.

So keep at it, keep that head buried in the sand. Just make sure you get into the gated community ASAP.

[PGalt]

Great thread/discussion BUMP!

T.E.A. $top $pending

[central_va]

Nothing about how it looks to management.

You mean management that makes 300 times the average workers salary?

[central_va]

Executive compensation is thru the roof.

[Sir Napsalot]

Re: Rush

Maybe it is because (so-called) conservative sphere has decided Trump is more disruptive, more ‘evil’. They have applied the Buckley rule “lesser of two evils”.

Lots of strange things happened in this (so-called) conservative sphere since Obama started running for potus.

[Abby4116]

(deducting labor and parts)

Cruz' tax specifically says they may not deduct the cost of labor.

[Flick Lives]

The only plus side of a VAT is that it eliminates local and state taxes.

How is that going to work? The VAT would be a Fed tax. What control does the Federal government have on State or Local taxation?

[Covenantor]

How is that going to work? The VAT would be a Fed tax. What control does the Federal government have on State or Local taxation?

IMO, that's the whole point of VAT, gathering even more tax money to dole out to favored gerrymandered districts and cities and withholding from opposition areas.

Even bigger Federal controls then are already in place, the Anaconda Plan.