There is nothing “Reaganesque” about a 16% VAT tax. Reagan correctly called VAT taxes the worst of all taxes, because they are invisible and hurt businesses and consumers alike.
Excellent post that will be ignored by Cruz supporters. Unless Cruz intends to stay in office forever with total control of the house his VAT can be driven up to any % by the next administration. No VAT.
There is nothing “Reaganesque†about a 16% VAT tax. Reagan correctly called VAT taxes the worst of all taxes, because they are invisible and hurt businesses and consumers alike.
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Well if the Cruz business tax is a VAT then the current Corp taxes are also a VAT.
the biggest thing is that it get rid of special set asides. While the business can no longer deduct wages when paying taxes, they also no longer have to pay the 1/2 of the payroll tax they currently pay.
Overall it scores as about a 100B/yr tax cut but the pro growth effect would create far more jobs.
The provisions where exports are’t taxed combined with the taxing of imports would bring a lot of manufacturing back to the US.
Bears repeating.
Cruz business tax is a VAT tax. No thank you.
Who do you think will actually pay it?
This is not a VAT tax like they have in Europe, which is why Cruz’s tax plan scores so high for economic recovery. The 16% flat tax on business replaces the much higher corporate and payroll taxes and allows businesses to deduct the full cost of improvements and expenses in the year they are incurred.
As for being invisible, the much higher corporate and payroll taxes are paid by the consumer now.
How is a flat tax a VAT?