How can you say Cruz plan is not good for small business? Maximum individual rate of 10‰ and 16% for business with no payroll taxes has to be better.
What Cruz has done is set a 10% individual tax rate which is too low so he has to make it up someplace else. That would be on business. No payroll taxes. Doesn’t that sound great? Yeh breast for the worker because now the employer will be paying the full payroll tax out of his/her revenues. How do you think Teddy arrived at his 16% figure?
The way Cruz tax plan would work is that instead of paying tax on revenues minus expenses and payroll the business owner would now pay a 16% tax on revenues minus expenses only. So the businessman would be paying 16% on wages including his own salary and then another 10% on his individual tax returns.
As a former small business owner I would not want to suck that up. Trump’s plan for a straight 15% Capitol gains tax is far more business friendly. But that’s because he knows business and Cruz hasn’t got a clue.