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.
No business pays any tax. That cost is always passed on to the consumer. Always.
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.
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.
I notice the comment section got one negative rebuttal and Bushbots shut down the comment section over at AEI real fast.
By this article’s definition of a VAT tax our current federal corporate tax system is a VAT tax (at 35%). Cruz’s corporate tax plan (https://www.tedcruz.org/tax_plan/) is a 16% tax on revenues minus expenses (once), not a every stage of manufacturing like a VAT tax.
VAT tax definition:
http://www.investinganswers.com/financial-dictionary/tax-center/value-added-tax-vat-2335
http://www.dictionary.com/browse/value-added-tax
http://www.businessdictionary.com/definition/value-added-tax-VAT.html
https://en.wikipedia.org/wiki/Value-added_tax
http://www.investopedia.com/terms/v/valueaddedtax.asp
BTW: It appears that Trump’s corporate tax plan is the same as Cruz’s only at 15%. https://www.donaldjtrump.com/positions/tax-reform
GOPe hit piece from back when Jeb was still running.
I would suggest to Senator Cruz that there is no tax revenue problem, only a spending problem.
It’s 1998, again. Thought you should be here darling.
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.
So how precisely is Cruz’s 16 percent tax different from the current 35% tax. Does Cruz’s tax not expense anything, meaning he charges the tax on ALL revenues. If that’s the case, I can see how that would work like a VAT.
Globalist Cruz is nothing but an evil CuboCanadian SPOILER
for the DNC. Cruz is in bed with Team Romney which
supplies money for his blackmail, media payoffs, corruption,
and of course, his Cruz’s slanderous whores, including
his Band of Eight.
How can a country with almost no tariffs like the USA even consider a VAT? It is suicide.
I would welcome VAT. But that would be the ONLY federal tax Millionaires would pay more than they do now as they couldn’t buy that yacht, plane or Mercedes without paying the tax. No shelter for VAT.
It’s not a flat tax. It’s a flat tax rate, and it won’t happen. Adding a VAT to what we have is unacceptable. I don’t vote for anyone who proposes it.
Great thread/discussion BUMP!
T.E.A. $top $pending
Will Wyoming understand it in time?
I’m sure I’m late to the party and someone else must have pointed this out but, tRump’s tariffs will also be paid by consumers and the countries upon whom these tariffs are imposed will certainly hit back on our products killing jobs while raising prices.
Economic illiteracy from Bernie’s fans I understand but, it’s rampant.
I thought Congress wrote the tax laws. Isn’t congress 1/3 of the problem?