AS I read this:
“The payroll tax, the biggest tax on the poor and middle class, would be erased, with Social Security and Medicare financed in full with no deficits. Included is a $10,000 standard deduction ($20,000 for couples filing jointly) and a $4,000 personal exemption. It means the first $36,000 for a family of four is exempt from all taxes.”
The deductions would still exist, unlike Trump’s 0-5-15 plan.
When the statement read that there would be a 10% tax on ‘rent’, who would pay that, the renter or the lessor?
When the statement read that there would be a 10% tax on interest, what incentive is there to save, since the gawdawful banks only pay me for my paltry monies deposited a half-percent accrued interest, now?
(Wish it would have been that way the past five years).
Slight problem. From an earlier thread admittedly from the NY Slimes, but hard to ignore
“TED CRUZ noted his just-announced tax plan involved “the lowest personal rate any candidate up here has. That’s true: His plan calls for a 10 percent flat personal income tax rate. But that’s not where his plan gets most of its tax revenue.
The biggest tax in his plan is a 16 percent value added tax. Mr. Cruz describes this tax as a business flat tax, but it’s not a tax on business profits. Businesses would pay the tax on their total sales, minus the cost of the things they bought to produce the thing they sold. They would not be able to deduct wages, meaning they would pay the 16 percent tax on an amount far greater than their profits. The conservative Tax Foundation estimates this tax would generate $25 trillion in revenue over a decade, making it about six times bigger than the existing corporate income tax, which Mr. Cruz would repeal, and more than twice as big as his proposed personal income tax.
Added up across the whole economy, Mr. Cruz’s VAT would be equivalent to a very broadly based sales tax, applying even to services like health care that are ordinarily exempt from sales taxes. Like a sales tax, this tax would be built into prices and paid by consumers†and for many lower-income households, it would be a far greater burden than the income tax.
Between this proposal, his support of H1 visa 6 fold expansion and his votes for TPA which hamstrings congress in avoiding agreements that would be deleterious to America
the bloom is off the Cruz rose for me and I think he may be presenting himself as a conservative while participating in the sale of his soul to the business cartels.
The fatal flaw with a flat tax is the administrative costs of low revenue returns. Administrative costs that exceed the revenue are a waste of time and money to process. That’s why Trumps plan of no returns under a certain revenue range makes more sense. I’ve always favored flat tax plans until Trump explained their fatal flaw.
No income tax replaced with a sales/production tax is still the best in my opinion.
flat rate of 10%, to be paid by everybody on everything  wages, profits, capital gains, dividends, rent, interest and all forms of individual income.So renting will no longer be a business?
"Profits" along with all business income would be taxed 16% under his NEW BUSINESS TAX. Then if you are a business owner those same "profits" would be taxed 10% again for your individual tax.
The eliminated corporate income tax is paid for off the backs of small business owners. The NEW BUSINESS TAX coupled with the business owner's tax on individual (business) income for all businesses is a small business/jobs killer.
They claim a 12.2% increase in wages. You might ask, where did these geniuses come up with that percentage? It comes from the elimination of payroll deductions, half of which is paid by your employer. To say it's a "wage increase" is a clever lie since payroll taxes are part of your wage package to begin with. What they aren't addressing is what happens to the 6% employer half of your payroll tax. They include that in the sham "wage increase" but that is a battle yet to be fought.
You would still be able to itemize deductions...how do you do that on a post card and no IRS to police it?
This is a plan thrown together by tax and business illiterates using "flat" as bait for idiots...by idiots. It looks like it was written the night before the debate on cocktail napkins.
It would be a legislative nightmare and debated to death. Sadly there's nothing Cruz loves more than new (bipartisan) legislation and debating.
Before it's over the "simple flat tax" would legislatively resemble the present tax code or Obamacare.
bfl
But that's on top of the existing $400-plus billion deficit. But only Cruz is talking actually shrinking government. All the others talk about spending more rather than less.
Few of the traitorous dogs referred to as politicians will see any value in Ted’s great plan. It would, you see, benefit the nation and pull it out of the Obama created swamp.
Politicians are like rats: their feeding habits destroy the health of those whose lives they invade via the ballot box.
We must face it: our Republic has been murdered and, unlike Lazarus, will not rise again....at least in its present shape. A meat axe must be taken to Washington, our State Houses, our system of courts, AND our Rube Goldberg scheme of manipulating markets and money.
In short a Franco-style removal and takeover of the present corrupted system that not only has ruined our nation and our lives, but has elevated perversion and would burn Christians and Jews at the stake.
Trump-Cruz!
Forget the newly minted Republican and retired brain surgeon.