For businesses, the corporate income tax will be eliminated. It will be replaced by a simple Business Flat Tax at a single 16 percent rate.Not all businesses are corporations and there is no such thing as a federal "business tax". The NEW business tax on businesses never subject to "business tax" is there to subsidize the "eliminated corporate income tax"...IOW, the corporate income tax would be eliminated and paid for off the backs of small business.
The income from most small businesses is taxed as ordinary income for the business owner AND deducting business expenses is not a gift like Ted would like you to think...every business already does it.
If there is a NEW flat 16% "business tax" it will be in addition to the NEW flat tax on the business owners individual income.
This kind of taxation will NOT encourage new business, just the opposite.
Ted Cruz has never owned a business. If we're going to trust someone to do what's right for business, it needs to be someone familiar with business and taxes...And that ain't Ted Cruz
My guess, and it’s just that at this time is that his ‘business’ tax replaces current corporate and current chapter S taxes and let’s you count all expenses now! That would be a significant improvement. I’d prefer taxing the broadest possible income base all at the same low rate and all just once. But that may be a bridge too far at this time.
Ted Cruz has never owned a business. If we’re going to trust someone to do what’s right for business, it needs to be someone familiar with business and taxes...And that ain’t Ted Cruz
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So, a Houston law firm isn’t a business?
Being the Solicitor General of Texas, with about 4000 lawyers under him isn’t like running a business?