Posted on 02/06/2016 5:02:50 AM PST by Kaslin
This idea of taxing total receipts which is what Cruz is talking about it not new. As a small business owner I had to deal with it for years from DeKalb County where my office was located. I just lied about my total receipts for years or it would have killed me financially to pay the tax every year.
The business part of Cruz’s tax plan is terrible. I’m not surprised as Cruz has never run a business in his life. Trump understands what its like. His tax plan is far superior.
I would like to understand.
Can you explain or point to a creditable source to help me do so?
Ask your accountant about it. He will likely be glad to explain it.
A flat rate 16% is terrible?
Granted, an NRST would be preferrable, but getting rid of the convoluted crap we have now would be an improvement.
Yes a flat rate of 16% is great if its based on profits. But Cruz’s plan is not based on profits. Its based on total receipts and then you can take out business expenses but not wages. So you are paying 16% tax on money you don’t even keep. How may jobs would you want to create so you could pay 16% tax on the wages? Not many is the answer.
I successfully ran a small business for 17 years and this is a really crappy idea for small business people. Its because Cruz has always worked for a paycheck not for himself.
The corporate income tax – the source of endless waste and fraud in our tax system – will be eliminated. No longer will American businesses face the highest top tax rate, 35 percent, in the developed world. The trend of American companies and jobs moving off-shore will stop. Instead, all companies will pay a simple, low rate Business Flat Tax of 16 percent. The tax will be based on revenues minus expenses such as equipment, computers, and other business investments.
Also eliminates the payroll tax...
“The tax will be based on revenues minus expenses such as equipment, computers, and other business investments.”
What did I just say? Revenues = total receipts.
“minus expenses such as equipment, computers and other business investments” But not wages. You as a business owner will now pay 16% tax on wages which is not profit to you. My payroll was about $58,000 per year so that would be $9,280 or about a $4,650 addition onto my expenses and then I would be paying 16% on my wages and then another 10% on that money for personal taxes when I file my individual tax return. Thanks Ted but I’ll vote for Trump. 15% on profits.
Who cares?!?!?
The bills HAVE to be paid; one way or another!!
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Who has the biggest spending slashing knife would impress me!
We have invisible VAT now.
EVERY business pays some kind of taxes on something, and that cost of doing business is passed onto the next purchaser of the product.
Every step of the way, more and more taxes are added to the final product.
Well you are currently paying for 1/2 your employees payroll taxes and 1/2 of their Medicare taxes. Those payments go away. You didn’t include this benefit to your business in your analysis.
You employees will also not be paying payroll taxes.
The departments to be cut are detailed at tedcurz.org
Btw under Cruz’s plan imports are taxed and exports are not taxed.
This will return many jobs back to America.
I'm beginning to smell a national sales tax/VAT tax.
Finally, here is why this is not a value-added tax like the ones in Europe. In Europe, the VAT has been an add-on tax to existing income and payroll taxes. The flat tax is a replacement for the corporate and payroll taxes.
It IS a VAT tax. A tax isn't a VAT unless the taxing authority collects other taxes as well? Argument FAIL.
Both Cruz and Paul are advocating a NMST. You know how that'll shake out -- it'll be tacked on to income taxes by the PTB. We'll be paying income taxes + VAT taxes designed to replace corporate taxes.
Deal-breaker. What the hell is Cruz doing, supporting scum like this?
One of the most unfortunate things that happened during the Reagan Administration was that George Bush (41) reaped a ton of patronage as his price for supporting Reagan in the general, instead of trying to submarine him like Rockefeller and Scranton did in 1964 to poor Barry Goldwater.
Bush got a Treasury appointment for Charls (no "E") Walker, one of the most notorious power lobbyists in "K" Street, who then used that post to lobby incessantly in public media (esp on PBS financial shows) for a VAT to replace the corporate income tax.
A sucker play to fleece the rubes. VAT/NMST hucksters always tell us that "customers pay all corporate taxes anyway, in the price". That isn't nearly as true as it would be if corporate taxes were simply shifted to the public to pay directly. It makes a world of difference, who is responsible for the revenue in the first place. Businessmen count on that difference being too subtle for the public to grasp, while they fleece us.
Who could induce Cruz to support a VAT/NMST?
Goldman Sachs, the Great Vampire Squid.
Damn it. Cruz is their boy after all.
Thanks for throwing a shadow on my support of Cruz. Slippery immigration proposal plus stealth VAT / NMST? We're screwed.
Trump's a liberal, Rubio's a RiNO butt-boy, and now Cruz is in their pocket, too, on immigration and tax policy.
It's obvious why they're pushing the NMST/VAT .... they'll need it when income-tax receipts begin to fall per-family, because immigrants have sandbagged everyone's comp.
We are so screwed.
O! How wonderful!
So instead, the responsibility of replacing that revenue will all come to me, a retiree, in the form of a VAT/NMST.
On top of income taxes.
What a wonderful deal. I can't wait to vote for the guy who has promised Wall Street that wonderfulness, delivered on my back.
Am I getting through to you?
Yeah, tigers prefer tethered goat.
Be sure and go after the retirees. They've got no income, tax hell out of their spending!
But not by statute. Huge difference, if I'm paying it bundled with a quid-pro-quo transaction, or just "screw you" paying it on top of everything.
In replacement of income taxes...
Don’t be deliberately obtuse.
Your spending is already being taxed. As is your property, your automobiles, etc...
Might wanna get that myopia checked.
bkmk
Let's simplify everything by eliminating money altogether.
We could all go to work like we do now, and the government could just dole out to us, all the things we need, from it's vast storehouse!
All of the folks who now work in some way in the collecting of taxes could be re-assigned jobs checking the work output of others.
So instead, the responsibility of replacing that revenue will all come to me, a retiree, in the form of a VAT/NMST.
I suppose that America imports NOTHING from countries with a VAT now; right?
If American companies did NOT pay 35%; then their products could be MORE than 35% cheaper!
That ought fix the dastardly ferineers that flood our shores with cheap junk!
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