https://www.tedcruz.org/tax_plan/
The business tax is also a flat tax of 16% vs. 10% personal tax and replaces the 55% corporate tax.
After we abolish the IRS, how is this tax going to be collected? Post card? Oh, sure.
I thought I heard cruz say all the other taxes are extracted out first.
The VAT is a Canadian thing, so is Canadian born Cruz.
As corrupt as our current tax system is, unless and until we acknowledge that no amount of money will ever be sufficient to fund the limitless appetite of the [federal] government, no tax system will work or be remotely fair.
Ted Cruz calls it a Business Tax, so that is what it is. Someone calling it a VAT doesn’t make it so. Calling a tax on the net profit a VAT tax goes against common nomenclature.
For those who like to spew half truths, never posting links to the info in an attempt to sway opinions, here is a link to Tax Foundations analysis of Cruz’s plan:
http://taxfoundation.org/blog/ted-cruz-s-business-flat-tax-primer
The tax is not like the add-on European VAT.
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.
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.