Brian4Liberty
10-30-2015, 09:44 AM
How good is Cruz's tax plan? His team had the benefit of first seeing the Rand Paul plan (and Trump plan), and working from there. How did they do?
The Simple Flat Tax (http://www.tedcruz.org/tax_plan/)
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Summary
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Under the Simple Flat Tax, the current seven rates of personal income tax will collapse into a single low rate of 10 percent. For a family of four, the first $36,000 will be tax-free. The Child Tax Credit will remain in place, and the Simple Flat Tax Plan expands and modernizes the Earned Income Tax Credit with greater anti-fraud and pro-marriage reforms. As a result, the Simple Flat Tax will ensure that low- and middle-income Americans have greater opportunities – not only through minimal taxes, but also through better, high-paying jobs that the Simple Flat Tax will generate. Under the plan, deductions for charitable contributions and mortgage interest payments are preserved.
The IRS will cease to exist as we know it, there will be zero targeting of individuals based on their faith or political beliefs, and there will be no way for thousands of agents to manipulate the system.
For businesses, the corporate income tax will be eliminated. It will be replaced by a simple Business Flat Tax at a single 16 percent rate. The current payroll tax system will be abolished, while maintaining full funding for Social Security and Medicare.
The convoluted tax code will be replaced with new rules of the game – so simple, in fact, that individuals and families could file their taxes on a postcard or phone app. The Death Tax will be eliminated. The Alternative Minimum Tax will be eliminated. The tax on profits earned abroad will be eliminated. And of course, the Obamacare taxes will be eliminated. Also gone will be the unending loopholes in the current code, the stacks of depreciation schedules for businesses, and the multi-tiered rates on income and investments. Under the Simple Flat Tax, the Internet remains free from taxes.
...
Of the 84,000 IRS employees roughly half (48 percent) work on “Examinations and Collections”; roughly another quarter (23 percent) work on “Filing and Account Services.” Under the Simple Flat Tax, with Americans filing taxes on a postcard, we will need vastly fewer examiners, collectors, filers and account servicers. Some resources – like those devoted to Obamacare’s taxes, or the Death Tax, or the code’s countless loopholes – can be totally eliminated. In other words, we will be able to redirect the energies of the 1200 full-time IRS employees currently devoted to Obamacare, and save the $386 million that the IRS spent last year on Obamacare alone.
...
Repeals the corporate income tax, with the highest top rate among developed nations, and stops driving jobs and business overseas. By replacing the corporate income tax with a Business Flat Tax, jobs and growth will return to American soil, and a chronic source of temptation to tinker with the tax code through corporate loopholes will be eliminated.
Allows for full and immediate expensing of business equipment, which will remove the burdens imposed by the current system on heavy industry, mining, energy, farming, ranching, and manufacturing.
• Removes the current tax penalty on American businesses that earn profits abroad, encouraging those businesses to bring profits home. Businesses will flock to America rather than keep money abroad or move overseas to escape high tax rates – and jobs and growth will come home with them. Under the Simple Flat Tax, U.S. businesses could return their overseas profits to American soil for a one-time 10 percent repatriation fee.
Eliminates a current competitive disadvantage for American products through border adjustability: foreign imports will be subject to the Business Flat Tax and American exports will have the tax removed, giving U.S. businesses a level playing field.
Provides Opportunity for Everyone:
Spares citizens from hundreds of wasted hours and expenses in tax compliance – Americans will instead be able to file their taxes on a postcard or a phone app.
Ensures that low- and middle-income Americans have the opportunity to build their wealth and prosper by exempting the first $36,000 of income for a family of four.
Allows for automation of compliance. Instead of having individuals report every detail about dividend or interest income, for example, banks, brokers, and financial institutions would simply withhold the tax.
Eliminates the injustice and burdens of the Death Tax, the Alternative Minimum Tax, and the Obamacare taxes. Family farms and businesses can stay in the family.
Enables Americans to save up to $25,000 annually tax-deferred in the Universal Savings Accounts (USA), allowing them to begin a nest-egg and secure their future and that of their children.
The Cruz Simple Flat Tax Features
The Simple Flat Tax eliminates the old convoluted system, creates one low rate for all individuals, and imposes a single, fair rate on businesses. Through its simplicity, the Simple Flat Tax ignites powerful economic growth, and promises an historic boom that will reduce the power of Washington and return prosperity to the people.
Personal Income Tax: 10 Percent
The current seven-tiered income-tax rates for individuals will collapse into a single, low rate: 10 percent. The standard deduction will be $10,000. The personal exemption will be $4,000. For a family of four, the first $36,000 will be tax-free. The Child Tax Credit will remain in place, as will the Earned Income Tax Credit. Existing deductions for charitable contributions and mortgage interest payments are preserved.
Payroll Tax: Eliminated
The Simple Flat Tax will eliminate the payroll tax, boosting jobs and wages for working Americans, while guaranteeing funding for Social Security and Medicare. The vast majority of Americans pay more in payroll taxes than in income taxes. Eliminating the payroll tax altogether will create an enormous incentive for job growth. The Simple Flat Tax is estimated to create an additional 4.86 million new jobs over 10 years, with wages rising by 12.2 percent over the same period – stunning numbers that evidence the growth-producing power of these reforms.
Corporate Income Tax: Eliminated; Business Flat Tax: 16 Percent
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.
Universal Savings Accounts (USA)
Universal Savings Accounts will create a new tool for Americans to achieve personal prosperity: $25,000 annually can be saved on a tax-deferred basis, and can be used for any purpose, allowing families to save and build for their future.
Death Tax: Eliminated
This unjust tax will be totally eliminated. Time and money wasted on an industry of lawyers and accountants to minimize taxes will be diverted to productive uses. Small family businesses and farms that would have been sold in order to pay the Death Tax will be spared and family businesses will stay in the family.
...
More: http://www.tedcruz.org/tax_plan/
The Simple Flat Tax (http://www.tedcruz.org/tax_plan/)
...
Summary
...
Under the Simple Flat Tax, the current seven rates of personal income tax will collapse into a single low rate of 10 percent. For a family of four, the first $36,000 will be tax-free. The Child Tax Credit will remain in place, and the Simple Flat Tax Plan expands and modernizes the Earned Income Tax Credit with greater anti-fraud and pro-marriage reforms. As a result, the Simple Flat Tax will ensure that low- and middle-income Americans have greater opportunities – not only through minimal taxes, but also through better, high-paying jobs that the Simple Flat Tax will generate. Under the plan, deductions for charitable contributions and mortgage interest payments are preserved.
The IRS will cease to exist as we know it, there will be zero targeting of individuals based on their faith or political beliefs, and there will be no way for thousands of agents to manipulate the system.
For businesses, the corporate income tax will be eliminated. It will be replaced by a simple Business Flat Tax at a single 16 percent rate. The current payroll tax system will be abolished, while maintaining full funding for Social Security and Medicare.
The convoluted tax code will be replaced with new rules of the game – so simple, in fact, that individuals and families could file their taxes on a postcard or phone app. The Death Tax will be eliminated. The Alternative Minimum Tax will be eliminated. The tax on profits earned abroad will be eliminated. And of course, the Obamacare taxes will be eliminated. Also gone will be the unending loopholes in the current code, the stacks of depreciation schedules for businesses, and the multi-tiered rates on income and investments. Under the Simple Flat Tax, the Internet remains free from taxes.
...
Of the 84,000 IRS employees roughly half (48 percent) work on “Examinations and Collections”; roughly another quarter (23 percent) work on “Filing and Account Services.” Under the Simple Flat Tax, with Americans filing taxes on a postcard, we will need vastly fewer examiners, collectors, filers and account servicers. Some resources – like those devoted to Obamacare’s taxes, or the Death Tax, or the code’s countless loopholes – can be totally eliminated. In other words, we will be able to redirect the energies of the 1200 full-time IRS employees currently devoted to Obamacare, and save the $386 million that the IRS spent last year on Obamacare alone.
...
Repeals the corporate income tax, with the highest top rate among developed nations, and stops driving jobs and business overseas. By replacing the corporate income tax with a Business Flat Tax, jobs and growth will return to American soil, and a chronic source of temptation to tinker with the tax code through corporate loopholes will be eliminated.
Allows for full and immediate expensing of business equipment, which will remove the burdens imposed by the current system on heavy industry, mining, energy, farming, ranching, and manufacturing.
• Removes the current tax penalty on American businesses that earn profits abroad, encouraging those businesses to bring profits home. Businesses will flock to America rather than keep money abroad or move overseas to escape high tax rates – and jobs and growth will come home with them. Under the Simple Flat Tax, U.S. businesses could return their overseas profits to American soil for a one-time 10 percent repatriation fee.
Eliminates a current competitive disadvantage for American products through border adjustability: foreign imports will be subject to the Business Flat Tax and American exports will have the tax removed, giving U.S. businesses a level playing field.
Provides Opportunity for Everyone:
Spares citizens from hundreds of wasted hours and expenses in tax compliance – Americans will instead be able to file their taxes on a postcard or a phone app.
Ensures that low- and middle-income Americans have the opportunity to build their wealth and prosper by exempting the first $36,000 of income for a family of four.
Allows for automation of compliance. Instead of having individuals report every detail about dividend or interest income, for example, banks, brokers, and financial institutions would simply withhold the tax.
Eliminates the injustice and burdens of the Death Tax, the Alternative Minimum Tax, and the Obamacare taxes. Family farms and businesses can stay in the family.
Enables Americans to save up to $25,000 annually tax-deferred in the Universal Savings Accounts (USA), allowing them to begin a nest-egg and secure their future and that of their children.
The Cruz Simple Flat Tax Features
The Simple Flat Tax eliminates the old convoluted system, creates one low rate for all individuals, and imposes a single, fair rate on businesses. Through its simplicity, the Simple Flat Tax ignites powerful economic growth, and promises an historic boom that will reduce the power of Washington and return prosperity to the people.
Personal Income Tax: 10 Percent
The current seven-tiered income-tax rates for individuals will collapse into a single, low rate: 10 percent. The standard deduction will be $10,000. The personal exemption will be $4,000. For a family of four, the first $36,000 will be tax-free. The Child Tax Credit will remain in place, as will the Earned Income Tax Credit. Existing deductions for charitable contributions and mortgage interest payments are preserved.
Payroll Tax: Eliminated
The Simple Flat Tax will eliminate the payroll tax, boosting jobs and wages for working Americans, while guaranteeing funding for Social Security and Medicare. The vast majority of Americans pay more in payroll taxes than in income taxes. Eliminating the payroll tax altogether will create an enormous incentive for job growth. The Simple Flat Tax is estimated to create an additional 4.86 million new jobs over 10 years, with wages rising by 12.2 percent over the same period – stunning numbers that evidence the growth-producing power of these reforms.
Corporate Income Tax: Eliminated; Business Flat Tax: 16 Percent
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.
Universal Savings Accounts (USA)
Universal Savings Accounts will create a new tool for Americans to achieve personal prosperity: $25,000 annually can be saved on a tax-deferred basis, and can be used for any purpose, allowing families to save and build for their future.
Death Tax: Eliminated
This unjust tax will be totally eliminated. Time and money wasted on an industry of lawyers and accountants to minimize taxes will be diverted to productive uses. Small family businesses and farms that would have been sold in order to pay the Death Tax will be spared and family businesses will stay in the family.
...
More: http://www.tedcruz.org/tax_plan/