Any new pro-growth tax system is subject to the same criticism. Bernie Sanders wants to raise the income tax to 90 percent. But no matter what the tax system, liberals always want to raise tax rates.

Liberals will try to raise the tax rates to finance even more spending. The complaint of some of our conservative friends is that the tax is TOO efficient and TOO pro-growth, and so it will raise too much money. By the way, businesses would be able to write off immediately any capital purchases rather than dealing with 10-, 20- or 30-year depreciation schedules. This is the broadest base in exchange for the lowest rates. Most free market economists will agree that the right way to tax businesses is on their income minus their allowable expenses.

Why would they if it was going to allow them to socialize the economy? Senate, Rand Paul and Ted Cruz, have a secret tax plan to expand the government? Most on the left despise the Cruz and Paul tax plans. Incidentally, that would STILL be lower than the Rubio tax rate.ĭoes anyone really believe that the two most relentless anti-big government crusaders against big government in the U.S. Don't forget, the fewer deductions, the fewer ways to cheat on your taxes, and the lower the tax rate, the lower the less cheating and the greater voluntary compliance. So the IRS could be dramatically shrunk in size. Second, the Cruz plan eliminates almost all deductions and credits – which is how they get the rate so low. For this reason, his plan is estimated by the Tax Foundation to grow the economy by a gigantic $2 trillion extra GDP per year after 10 years. The Cruz plan has other virtues that conservatives should think about as they decide which tax plan they like best.įirst, the Cruz plan would give America the lowest tax rates since the income tax was ‎devised 100 years ago. Under the Cruz and Paul plans, the payroll tax and the corporate income tax are eliminated. VATs are regarded as bad taxes because, as Rubio points out, in Europe, they have helped finance flabby cradle-to-grave welfare states. But in Europe, the VAT has been an add-on tax to existing income and payroll taxes. A VAT is a tax that businesses pay on their receipts, minus their allowable expenses, including capital purchases and other input purchases. So now to the charge that Cruz and Paul want a value added tax (VAT). This contrasts sharply with the two Democratic candidates, Hillary Clinton and Bernie Sanders, who seem to be in a weekly bidding war to see who can raise tax rates the most.

Ted cruz flat tax