Posted on 04/15/2016 10:56:53 PM PDT by Hanna548
Make no mistake here. Cruz is proposing a VAT add-on to the existing personal income tax system.
living in maryland, i am working to change senators... they are the croniest...
we the people will work it out one way or the other.
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Darling SG, I knew you would bring common sense this mess.
Thank you, for all you do. Miss you!
Repeat: Always!
You make a good point, and this can be a “learning experience” for you.
Educate yourself re: FairTax. Go to https://www.fairtax.com and read the FAQs.
Once you understand the FairTax, it will make sense to you.
And, then, you will come to understand how FairTax benefits WVERY PERSON LIVING IN AMERICA!
You have a firm grasp of the obvious, EV!
Hope all is well with you and yours.
VAT is still an EVIL tax!
No amount of rhetoric can change that simple FACT!
WE MUST ELECT STATESMEN!
IOW, elect those Americans who care about America!
Make America great again!
One does what one can, sweetie!
ABSOFREEPINGLUTELY!
The FairTax was not fair in the objective sense. I was/is a progressive tax because of the godawful pre-bates concept.
That sums up Cruzers. NO-INFO. They don't read, won't read, refuse to inform themselves.
Heidi's remarks about the girls calling their dad "the guest" on his rare visits home is from multiple Heidi interviews with media (also that she works 80 hours a week, one or more live-in nanny raises the girls, and Heidi RECOMMENDS to working women that they hand their kids over to a live-in nanny), widely reported. Will you accept the Washington Post as a source:
“There’s a guest in the house!” she shrieked.
Now, attention all Cruzers: don't post your sh!t until you have RESEARCHED and READ and are fully informed. You guys are the worst of the worst---forming and regurgitating opinions based on NOTHING and readily contradicted by truth.
See post #211
Someone who stumbles upon Free Republic and sees this space2001 idiot spouting off with zero knowledge of the subject matter---well, most Freepers are well-informed: The Trumpers. This thread alone proves it. Countless other posts prove that, and countless posts prove that Cruzers here are CLUELESS. Clueless Losers. I don't know how they have the brains to have a job, to dress themselves in the morning.
A tax, is a tax, is a tax.
Call it flat, fair, progressive or regressive, VAT, sales, incomes, wealth, real estate, inventories, transaction, a fee, it is a tax.
Ultimately the resulting fully taxed (or tax advantaged) price to the buyer is what must be born by the budgets of those buyers.
Instead of making things, the US has become a “service economy” one part of which is dodging taxes, creating financial workarounds, etc.
Whenever Congress addresses taxation, be certain a major lobbying force becomes tax lawyers and accountants, who want to keep their field of employment.
And they will. Talk of tax reform is only a subject for campaigns, not actual implementation.
George Harrison wrote “Taxman” in 1966.
Hold up for a second. Let's run some numbers rather than just saying "VAT IS BAD!"...
Assume you run a business that has $1,000,000 gross revenue. You shoot for the normal 10% net profit. That's $100,000 in profit on $1,000,000 in revenue. Today's tax rate is 39.6% on gross profit. You need to make ($100,000 / (1-0.396)) $165,289 in gross profit to end up with $100,000 net.
Taxes would be ($165,289 - $100,000) $65,289. With me so far? This is TODAY'S method. And since we all know that businesses don't actually pay tax (they collect it from their customers), that means customers are paying $65,289 in extra tax on that - about a 6.5% tax rate on gross receipts.
Now, how about a VAT situation? Well, VAT is Value Added Tax; it's not on gross receipts but only on the value you've added to the product (your addition). So assume that you start with $500,000 worth of raw materials, and you add $500,000 in value to them - that's how you get to that $1,000,000 in revenue. And we have the same gross profit - $165,289. What is the 16% VAT tax?
It would be (($500,000 - $165,289) * 0.16) $53,554. Meaning after the VAT is paid the business has ($165,289 - $53,554) $111,736 remaining. Taxes paid by consumers (and collected by the business) are about 5.3% of gross receipts.
Now, the business owner can keep the extra $11,736 - or he can cut prices by that much for his consumers, giving a 1.2% price cut, meaning the actual cost to consumers, as compared to today's method, is (6.5% - (5.3% - 1.2%)) 2.1% lower. So it's either a net savings to the consumer, or more profit for the business. Realistically, it's probably going to end up as a mix of both.
Replacing the corporate income tax with a VAT tax is not a bad thing provided the VAT tax rate is set sensibly. It can actually be a good thing! IMHO it's always bad to tax income, as that hinders and restrains savings. Better to tax consumption, when dollars are spent rather than earned. The consumer (corporate or individual) can choose the tax load and when it is spent, rather than Government getting "first dibs" on your life energy.
And yes, I've lived overseas extensively, and have experienced terrible tax regimes (US, Belgium), acceptable ones (Chile), and really really good ones (Hong Kong and Singapore).
So if he calls it a bird in paradise, is that hat it is or is it such that if it walks like a duck and talks like a duck, ti likely is a duck
This “business tax” of Cruz’s DOES NTO eliminate local and state taxes in any way shape or form. It does eliminate social security tax, half of which is paid by business and it does eliminate the corporate tax, thusly throwing the entire tax burden onto the consumer and note....social security GONE.
So in reality your tax would be 10% + 16% of what you buy (maybe because in order to compete some may absorb part of the VAT) the VAT per individual would be less for a married couple.
PLEASE, don’t pin a liberal or Progressive label on me, all I am saying is why should the consumer bear the entire tax burden. Don’t you think those billionaire hedge fund guys could share in the burden? Why shold they be exempt?
That is the only way Globalists can collect tax from the people....or at least the most convenient way...you have to pay tax in order to live...getting very close to that loaf of bread and wheel barrow full of money thing
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