Posted on 04/15/2016 10:56:53 PM PDT by Hanna548
Make no mistake here. Cruz is proposing a VAT add-on to the existing personal income tax system.
Don’t you think that happens already, and most of it is hidden. Take a look at you phone or cable bill sometime. At least that tax is transparent and you will know what your paying.
Sure it does on those things but this will be on everything. You guy a gallon of milk, the cost will be 16% more, or a pair of jeans...everything...this is a huge tax and it is also a tax well enough hidden that they can raise it easily without the consumer even knowing. This is a VERY BAD thing.
No business pays any tax. That cost is always passed on to the consumer. Always.
I’m not versed on the tax plan, but from I understand the intent would be to do away with all those add ons.
In a way yes, taxes to businesses are figured in but this tax is figured in AFTER the business has determined what he intends to charge for an item. IT IS A VAT TAX and that is the type of tax that has destroyed Euopean Nations. A tax like this hits those that earn the least hardest and obsolves hedge fund guys from any taxes at all.
I have tried, repeatedly to explain this to Cruz supporters and yet they refuse to "get it", or claim that I am wrong; but I'm correct.
In the early days of FR, I was in the midst of the the FLAT TAX/VAT V THE FAIR TAX WARS and know this stuff cold!
Cruz's "FLAT TAX" at 10% is also far too low, which has already been proven decades ago. His entire FLAT TAX and VAT proposals will utterly destroy this nation, cripple the economy, and terminally harm all but the 1% of the 1%ers.
You just don’t get it, because you don’t want to. You were here for the TAX WARS...didn’t you EVER read any of the threads and educate yourself? Oh, never mind, of course you didn’t! :-(
This insures that everyone who is a wage earner, pays twice. They earn $100, $10.00 goes to taxes, they spend the remaining $90 on goods and services they only get $75.60 worth for their $90.
thanks for the post. yup.
it’s a new tax, taxes a product again and again all through the production chain, so it’s going to destroy jobs, encourage more corporate takeovers and consolidation, and be added to the consumer’s sales taxes indirectly. very bad idea.
THANK YOU!! I have been trying to get traction on this for weeks..and it seems like I am talking to air...can I post a graphic here?
Cruz doesn’t know ANYTHING at all about finance, business, taxes, or anything else. He is NOT “brilliant” and has NO ideas of his own, other than dreaming of having lots of money, power, adulation, and sex.
I both know and understand this topic, so if you ever need any help, just ping me. I'm more then happy to add my expertise .
Oh, I agree that it will hit hard on the economy, all taxes do, but the idea that any business does not include the cost of tax in product price is fiction. All costs are passed on to the consumer. Minimum wage or tax. Sometimes the added cost prices a business out of the market but no business tax ever comes out of the pocket of the businessman, only his customers’.
“Sure it does on those things but this will be on everything. ‘
Actually it is worse than that. It is on everything, several times.
The dairy farmer sells raw milk to the dairy and pays 16% on the value of raw milk.
The dairy food company sells the pasteurized milk to the cheese company and pays 16% on the added value between the raw and Pasteurized milk.
The cheese maker sells the cheese to a deli and the deli pays 16% on the added added value of cheese over the Pasteurized milk.
The deli buys the cheese and adds 16% to the added value between a block of cheese and a sandwich.
At no stage in this process does the VAT replace income tax or sales tax.
A VAT raise huge amounts of money by essentially taxing the same item over and over again.
This item in the tax plan by Senator Cruz is a good reason to not vote for him. The liberals would love this tax because they’d try to raise it as a hidden tax.
You don't understand this at all, but you need to; BADLY!
Well done; you understand this topic!
The buy making gadgets doesn’t have to figure taxes into the price he charges for a product because that tax is added on AFTER he establishes that price so the business is left out of taxation. It is so inflationary and it will cause real hardship for a lot of people.
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