Posted on 03/04/2016 11:59:11 PM PST by JediJones
Ted Cruz’s tax plan would cost less and stimulate the economy more than Donald Trump's, a recent analysis found.
“Of the two proposals that we have examined so far, those by Trump and Cruz, we find the Cruz proposal to be the better of the two,” said David Tuerck, executive director of the Beacon Hill Institute and senior fellow at the National Center for Policy Analysis. The free-market groups released a report comparing the economic effects of the tax plans from the two Republican presidential candidates.
Trump’s plan would lower the top individual income tax rate from 39.6 percent to 25 percent.
Cruz’s plan would impose a single individual income tax rate of 10 percent and would eliminate payroll taxes. He would replace the corporate income tax with a 16 percent business flat tax that is often seen as a value-added tax.
One reason why Cruz’s plan would lead to both less revenue loss and more economic efficiency than Trump’s plan is that it "goes further than the Trump plan toward turning the tax code into a tax on consumption,” the report said.
In 2026, Trump’s plan would lower government revenue by about $800 billion, while Cruz’s plan would only cost about $550 billion, according to the report.
Cruz’s plan would increase real gross domestic product (GDP) in 2026 by about 8 percent, while Trump’s plan would only increase real GDP by 2.61 percent, the analysis found.
Both plans would lead to a decline in public-sector jobs but an even larger increase in private-sector jobs. Total employment would increase in 2026 by 1.56 percent under Trump’s plan and by 2.74 percent under Cruz’s plan, according to the report.
Cruz’s plan would also increase business investment and personal income more than Trump’s plan would, the report found.
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The one that will never get implemented?
I think that the three of them all have good plans, as did Fiorina.
This is a case of there isn’t really a bad choice
I've only seen a few comments here on FR about Cruz having a VAT in his tax plan. Is that true? If so, that is a really bad idea.
Good. I'd also like to see public sector labor unions outlawed.
Yes he does and his Flat Tax is too low; it won’t cover much of anything and the debt will rise.
Do you just spam threads Trump bashing, or do you participate in them?
Cruz has tacked on a 16% tariff on all imports while criticizing Trump’s suggestion of tariff on foreign made goods...But Cruz calls his a tax...He must have learned that from John Roberts...
At this point, all these tax plans are just suggestions.
When Congress gets done with them, there’s no telling what we’ll end up with.
All plans should be evaluated also on their ability to pass congress. That is a critical issue that cannot be overlooked. I could offer repeal of 16th and a national sales tax only, but would it pass? It is my favorite.
What must be accomplished in our legislative bodies to implement a new tax plan?
What tweaks to either plan will change their position? That is, how malleable are the plans for adjustment or change?
At this planning and proposing stage, any proposed tax plan can be "adjusted" to be the "best." It seems gratuitous to favor one over another at this early stage.
All plans should be evaluated also on their ability to pass congress.
I disagree. Persistently put great ideas out there and push and push and push... Poppycock to all the legislators who don’t put forth bills because they won’t pass/get signed by the President.
And, yes, the Cruz tax plan is far superior to Trump’s liberal ideas of taxing the wealthy more...
Premise: The Flat Tax and Fair Tax proposals have been discussed for 20 years. Apparently, the idea is so radical that every time it's brought up it never goes anywhere. We know this, and Trump knows thist. So why would propose either one again and expect different results? According to Einstein, that would be insane.
Instead adopt a three phase tax simplification plan.
Phase One - Flatten and simplify existing tax.code... clean up the mess and fire some tax lawyers. a side benefit would be the reduction of tax experts and lawyers required to file tax returns and thus reducing costs to businesses and individuals..Yay! We're saving some money! Cool!
Phase Two - Propose a Flat Tax (or Fair Tax)
Phase Three - Let the legislators argue which one is preferable based on the voters' preference, and repeal existing tax code and implement the new plan in its place.
Phase Four - Eliminate 95% of IRS personnel. Yay! We save more money!
For instance, they never offer any solutions to anything and instead bitch and moan saying that we cant build (Trump's) wall because it costs too much money. The stupid wall is cheap. The illegals are costing this country 260 billion a year. The wall is expected to cost 10 billion (forget Mexico for the moment).
Furthermore, if Kerry and Obama can donate 150 billion to our enemies who want to murder us, 10 billion is a spit in the bucket.
Then consider the cost of the illegal aliens carrying illegal drugs through our southern border. Cost is not an issue to anyone with common sense.
I have no problem with putting them out.
That doesn’t mean they will pass.
So, when I judge a plan, I also look at the probability it will pass congress.
Cruz's plan (forget the VAT) won't work for the same reason Forbes' plan never worked. Most of us would like to see a Flat or Fair tax, but for many, they are considered too radical and people are scared to death of change.
Trump's plan for taxing the wealthy more addresses those who pay almost ZERO tax. He has explained this dozens of times. If you missed it, read his book.
Cruz’s plan includes a VAT tax no and HELL NO
It’s a business tax rate of 16 percent. Only being called a vat to smear Cruz.
Both plans are okay, Ted’s is better.
Except Cruz requires the total disbanding of the IRS. Let’s see a show of hands by those who think THAT has a prayer of happening.
Funny I googled vat tax ted cruz and it explains that even though Ted calls it something else it’s a VAT tax.
Thanks for playing, is that you Ted?
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