Zippyjuan
09-16-2015, 02:03 PM
Republican presidential candidate Sen. Rand Paul (R-Ky.) released his tax plan to voters earlier this summer. Voters looked at this as another generic Republican tax plan that was used by many different candidates in the past.
But when you look more closely at Paul’s tax plan, there’s an argument that can be made that he has the boldest tax plan by any GOP presidential candidate in the past quarter century.
Senator Paul’s plan calls for a 14.5 percent flat rate on income. It will replace today’s corporate taxes with a new 14.5 percent value-added tax. It eliminates all estate and gift taxes, (most) tax credits, deductions, and loopholes that favor big business.
Americans who identify as poor or in the lower middle class will benefit greatly from this plan. A family of four under a President Paul tax plan would pay no income taxes on the first $50,000 in earned income.
Along with the first $50,000 in earned income being exempt under this tax plan, the payroll tax will also be eliminated. The payroll tax is the largest tax that most Americans pay.
When conservative talk-host Glenn Beck first saw this plan he said, “I’m telling you, this is erotic, it is so good.”
Paul’s tax plan isn’t a flat tax. His plan is a slightly progressive tax system that liberals and conservatives should get on board with. This plan brings a ‘bottom-up’ approach to cutting taxes which many voters haven’t seen before.
Let me ask you a question. How do you build a house? Do you build a house from the top-down? Do you build a house from the middle-out? No. The answer is simple. You build a house from the bottom-up.
This tax plan presented by Paul is simple, fair, reduces income inequality, and promotes more growth for our economy. If you can get on board.
http://thehill.com/blogs/congress-blog/presidential-campaign/249386-the-rand-paul-tax-plan-stands-out-in-a-heavy-gop
My take- about half of all personal income tax filers owed zero net taxes (after existing deductions and exemptions). http://www.taxpolicycenter.org/taxtopics/federal-taxes-households.cfm They aren't going to benefit at all from exempting the first $50,000 of earned income. (Median income is a bit over $50,000).
However, that "Value added tax" of 14.5% is a national sales tax in practice and would raise the costs that everybody pays for what they purchase- thus actually INCREASING taxes those at lower income levels pay. "Ending payroll taxes"- again, no benefit to most households which owe little to no taxes. Does that include Social Security Taxes? If so, how do you intend to fund Social Security?
This tax plan presented by Paul is simple, fair, reduces income inequality, and promotes more growth for our economy.
Simple- yes.
Reduces income inequality? No- it increases the overall tax burden on lower incomes rather than reducing it. That widens the gap. Eliminate estate taxes and gift taxes? Adds income to the wealthy- increasing the gap.
Promotes growth? By raising the prices of things via the Value Added Tax? Higher prices means lower demand and a slower, not stronger economy. Cuts deductions and loopholes used by big business? That raises their costs of doing business and will slow- not increase- the economy. VAT paperwork also raises the costs of doing business. And higher business costs get passed down to the consumer in the form of higher prices.
But when you look more closely at Paul’s tax plan, there’s an argument that can be made that he has the boldest tax plan by any GOP presidential candidate in the past quarter century.
Senator Paul’s plan calls for a 14.5 percent flat rate on income. It will replace today’s corporate taxes with a new 14.5 percent value-added tax. It eliminates all estate and gift taxes, (most) tax credits, deductions, and loopholes that favor big business.
Americans who identify as poor or in the lower middle class will benefit greatly from this plan. A family of four under a President Paul tax plan would pay no income taxes on the first $50,000 in earned income.
Along with the first $50,000 in earned income being exempt under this tax plan, the payroll tax will also be eliminated. The payroll tax is the largest tax that most Americans pay.
When conservative talk-host Glenn Beck first saw this plan he said, “I’m telling you, this is erotic, it is so good.”
Paul’s tax plan isn’t a flat tax. His plan is a slightly progressive tax system that liberals and conservatives should get on board with. This plan brings a ‘bottom-up’ approach to cutting taxes which many voters haven’t seen before.
Let me ask you a question. How do you build a house? Do you build a house from the top-down? Do you build a house from the middle-out? No. The answer is simple. You build a house from the bottom-up.
This tax plan presented by Paul is simple, fair, reduces income inequality, and promotes more growth for our economy. If you can get on board.
http://thehill.com/blogs/congress-blog/presidential-campaign/249386-the-rand-paul-tax-plan-stands-out-in-a-heavy-gop
My take- about half of all personal income tax filers owed zero net taxes (after existing deductions and exemptions). http://www.taxpolicycenter.org/taxtopics/federal-taxes-households.cfm They aren't going to benefit at all from exempting the first $50,000 of earned income. (Median income is a bit over $50,000).
However, that "Value added tax" of 14.5% is a national sales tax in practice and would raise the costs that everybody pays for what they purchase- thus actually INCREASING taxes those at lower income levels pay. "Ending payroll taxes"- again, no benefit to most households which owe little to no taxes. Does that include Social Security Taxes? If so, how do you intend to fund Social Security?
This tax plan presented by Paul is simple, fair, reduces income inequality, and promotes more growth for our economy.
Simple- yes.
Reduces income inequality? No- it increases the overall tax burden on lower incomes rather than reducing it. That widens the gap. Eliminate estate taxes and gift taxes? Adds income to the wealthy- increasing the gap.
Promotes growth? By raising the prices of things via the Value Added Tax? Higher prices means lower demand and a slower, not stronger economy. Cuts deductions and loopholes used by big business? That raises their costs of doing business and will slow- not increase- the economy. VAT paperwork also raises the costs of doing business. And higher business costs get passed down to the consumer in the form of higher prices.