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.
Until the democrats inevitably get control of congress and then the other taxes come back and the VAT stays
Also the Cruz plan is a proposal. The democrats would love to add this tax. and would happily compromise temporarily to get it.
The Cruz plan makes the same argument that was made in favor of State income taxes. “The sales tax goes away with this” But it didn’t.
NEVER add a new type of tax.
The problem with the typed word, is that we can't hear the inflection in other's voices, nor see their face or body language.
We've ALL been "guilty" to one extent or another, on this site, of misinterpreting/reading something into another's post/s.
"At least that tax is transparent and you will know what your paying."
Ok, so one vote from Dstorm for a 16% tax increase in the price of everything we buy.
Other votes ?
Ted didn't think this up and his version of it is completely unworkable!
The fact is, Cruz has NO vision, NO ideas of his own; he is just a parrot for those who OWN him. He couldn't explain any of this, if you gave him a week to do it; without a script and much help from others!
VAT. Can be very deceptive.
This isn’t an at time of sale tax.
Every step of the way, when value is added, there is a tax.
One item can be taxed a number of times.
This would make it nearly impossible for manufacturing to return to the U. S.
Ted wants this?
Good grief!
The VAT is very popular among European socialist governments (but not the people of Europe, except those who live large off the socialist dole).
That should be a huge red flag right there.
Globalists want this tax in America.
Sadly, it appears that you neither care to actually learn about this topic, nor the destruction of the economy and this nation.
How do you get that out of this: “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.” https://www.tedcruz.org/tax_plan/
Revenues minus expenses at the end of the year & pay 16% on that seems pretty simple.
The problem I see is that the Cruz plan doesn’t seem “revenue neutral”...”eliminate all payroll taxes” [15%])...he must be planning some budget cuts?
I don’t do TWITTER, I don’t have a FB page, but I DO write for and send articles to TWO Tea Party organizations, send out NEWS LETTERS to friends and family;. though this is now a MUCH smaller group that it was when I started the NEWS LETTER, back in ‘99. That NL was HUGE and I just couldn’t manage the replies, once it grew to far too many people. I actually DO have a real life too. LOL
This tax is added on to the price of the product for the consumer to ultimately pay. And yes it eliminates the corporate income tax....so like I said, people like Robert Mercer will not be paying any taxes at all.
And the ONLY "fiscal conservative" running, is Trump!
Weren't you on FR, too, when this was raging, way back when?
Remember the FLAT TAX & VAT V. THE FAIR TAX WARS?
>>Second of all, a VAT of 16% ( which is what Cruz is asking for ) has to be added to EVERY SINGLE PIECE of something produced, along the line, with yet another 16% added to the finished product.
Not according to the analysis done at the tax foundation (or the Tax Policy Center (Brookings - ie. the Left).
Cruz’ plan is a “subtraction method VAT” unlike many of the Euro plans. No double dipping.
http://taxfoundation.org/blog/ted-cruz-s-business-flat-tax-primer
How Would It Apply To an Ordinary Business’s Income?
The starting point for a subtraction-method value-added tax is pretty simple, especially when it comes to everyday private businesses. You start with all of a business’s revenues. (Most likely, this tax would be filed on a quarterly basis.)
However, you don’t stop there: a problem with counting all business revenues is that it ends up being a double-counting. For example, suppose you love watching Disney movies on Netflix. Netflix gets revenues from your subscription, and then it uses some of that money to pay Disney for the rights to Disney content. If we counted that money both at the Disney level and the Netflix level, we’d end up taxing the same basic product twice, merely because it involves two different companies. This is not good tax policy; that’s why modern tax systems try to avoid this.
The way the subtraction-method VAT fixes this is by, well, subtraction. Under this kind of tax system, Netflix would count all of its revenue, but then subtract the amount that it pays to other businesses, like Disney. Disney would then have to account for its own revenue and also file taxes. ****The result is that everything gets neatly single-counted, and nothing gets double-counted.****
There’s also one other thing the tax subtracts: capital costs. That is, when Ford builds a new auto plant, it can deduct those business costs as well. This is an important aspect of the tax, and it marks a slight difference with corporate income taxes today (which also allow these costs to be deducted, but over a much more complicated schedule.)
Actually that is another problem with it. It is hidden enough that it can easily be raised without anyone having a clue.
It's refreshing to see intellect in action. That is certain more rare here today than in the past.
I'm not sure why so many so-called conservatives oppose the shift from emphasis upon income taxes to an emphasis upon consumption taxes.
I think people are just conditioned to think VAT means evil or something. Which, of course, is utter nonsense.
It is a silly myth that VAT killed Europe. That's like saying a gun itself kills somebody. It is the LEVEL of taxation and spending which kills once-free governments.
Call it a business tax, VAT, whatever. It is consumption-based taxation. Which is a good, fair and moral thing.
Progressive income taxes are the bitter enemy of Freedom - which used to matter around here.
And, love him or hate him for other reasons, Cruz is the only guy left running who is correct about this aspect.
>>This tax is added on to the price of the product for the consumer to ultimately pay. And yes it eliminates the corporate income tax....
The consumer ultimately pays the tax - agreed. But right now that dollar donut includes the 35% corporate tax. If that’s eliminated then the donut is only 65 cents plus the 16% VAT, which is still under a dollar.
Generally a tax would be applied to net income...ie sales price - cost...this way it is added to the price...it has nothing to do with the business other than adding it to the bill when the widget is sent to the retailer.
You complain about the waste and fraud in the tax system (which allwos business to get out of paying taxes) Well THIS obsolves them of having to pay any taxes at all!!
Assuming you judge fairness objectively and not subjectively like liberal progressive tax proponents.
Despite the false advertising, the Fair Tax was progressive. Because of the horribly misguided concept of pre-bates!
What Cruz's plan does ( which is NOT Ted Cruz's at all, but someone else's who wrote it out and gave it him ) is to revive old plans which have long ago been discarded by REAL CONSERVATIVES and EXPERT ECONOMISTS, because it's all not just unworkable, but destroys our economy and nation!
We, as a people can't survive, by having to pay a great deal MORE tax to the government to waste, make companies, even mom & pop stores become tax collectors and part of the Federal government and part of the IRS! And THAT is exactly what this plan does.
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