http://dailycaller.com/2015/11/02/ted-cruz-abolish-the-irs/ How can anyone argue against this? The current tax system is clearly broken. It's way past time to do something about it.
To quote from the article: "This is a $3.6 trillion tax cut. So it is a tax cut from current rates. When you factor in economic growth, and over ten years this ends up reducing tax revenue about $760 billion, so it is less than a trillion, it is in terms of the impacts on the budget, much, much smaller than many of the other plans introduced by other candidates. Where have we heard that before that the magical mushrooming of economic growth will pay for the tax cuts? Oh wait, wasn't it Dr. Carson who runs on the same premise? So the question is: Why haven't the tax cuts of the past resulted in balanced budgets and growth like in boom times? Why would we expect that the snake oil of "trickle down" will work this time? Give more tax cuts to the "job creators" who already have all the money and still only create jobs overseas? No thank you.
I think you might be mistaken on WHO exactly would get those tax cuts. I'm far from a "job creator" and I have no money overseas. And yet I would greatly benefit from a 10% flat tax as I suspect most people reading this would. So again, why not?
I've liked the idea of a flat tax in theory, but in application I find it can be harmful... I mean its a great idea to think we're all equal and we all pay the same rate... and they carve out a little leeway for the bottom... but even though I like to be fiscally conservative and I think something like that is fiscally conservative, socially I think its a little destructive... lately I've been going back and forth with someone else, working out the "real world effects" on different styles of taxes... and we've settled on a similar approach, that rids us of the IRS, and equalizes america... but it does so in a little more progressive way... a property tax only system... most states already collect property taxes based on land and home assessments combined... and as a result, those who live in poor areas pay less obviously, renters split their shares, and the wealthy pay for expansive lands or lake front property and penthouse suites... so I think this style of tax would accomplish the equalization of americans for the type of life they ultimately have... its conservative and progressive at the same time... those with more pay more, those with less pay less... but everyone consumes to some degree and should pay to some degree, but more in line with their current place in life... think of being able to remove gasoline taxes, sales taxes, incomes taxes, business taxes... etc etc... all other taxes removed but a simple property tax... companies that consume vast tracts of land will pay something, they will never escape the taxes... people living in ghettos will pay next to nothing for taxes, while those with a luxury estate will pay more taxes than the ghetto folks... but nobody will be able to escape or find ways around it... and we already have systems in place that will simplify and streamline so we won't have huge costs to implement... most states already send a tax bill, just add one more line for federal taxes... so why do I think this is better... companies won't have to play the shell game with taxes, in fact they won't have to deal with all the monthly or quarterly payments, they won't have to track incomes of employees and make adjustments and do all the goofy things these "simple" tax solutions provide... but more so, places that lie cheat and steal taxes and never turn them over, suddenly will be on the same footing as everyone else, since we require property in some fashion to conduct business... maybe its your home, maybe its a rental at the mall... but rather than try to crack down on fraud and theft from people not paying the taxes or getting correct returns, we simplify and link it to property... I think it will lift home values in low value areas as people rush to find cheaper properties to pay less taxes... you'll see people move into ghettos in order to escape the taxes creating more solid and stable places... but most wealthy folks, will still want to live away and in luxury so I don't think many of them will try to escape folks... and think of what this will do for companies... sure they pay property taxes but thats it, no more shell companies to hide money, no more real estate companies created to rent their own property back to themselves just to work loop holes... no more deceit and fraud... your property is taxed, heres the bill... now throw away that 20,000 page book of all the tax codes and loopholes you need to dance around... it will accomplish the "get rid of the IRS" goal I love to see from folks... but it will also make life so much easier and cheaper for everyone... sure accountants and tax return service places will hate the idea, but no plan that simplifies the code doesn't harm them... so we'll lose a million jobs from society for returns and compliance... but ultimately it will free people from the system they can cheat and steal from... no more people getting back thousands they never earned, no more tax return fraud from people over-sea or in prisons filing returns, no more companies that pay zero taxes despite making billions over-sea... in fact I think this will drive companies to bring headquarters back to america... its much cheaper paying property taxes than corporate taxes... imagine the thousands of high paying jobs we bring back and how much more will flood in once we remove some of the major costs to having a factory in america... now it'll just be a race to find ways to use less space to pay less taxes... more efficiency and better use of lands... and those willing to pay for more, can still have more without being demonized for being wealthy... I think this will lift more people up into wealth...
a flat tax where everyone pays the same % for every dollar they earn over the poverty line is the only fair system all income needs to be treated as income, no caps, everyone pays the same 35% across the board for every dollar earned over the poverty line maybe the first 5k of investment income per year as tax free .
I don't think this tax plan from Ted Cruz is going to solve anything. The National Debt will continue to rise.
As we are talking impossible pipe dreams I don't think business should be taxed at all. Nor do I think the federal government should tax the people at all. The federal government should tax the states and the states should collect from residents.
I like Ted Cruz's idea because big corporations and the extremely wealthy are writing off and paying little. It would also give more people "skin in the game", when the government wants to raise taxes. Let's be honest, it would take about a 20% tax to pull this off. But, I am 100% for it.
There will always be an IRS no matter which type of tax system is implemented. BTW, the AICPA disagrees with him.
Tax hikes have done a great job of keeping companies and jobs here, haven't they? Just last week we heard that Pfizer is thinking of merging with an Irish company (Allergan) because corporate tax rates in the U.S. are the highest on the planet. We've been trying it the Left's way for the past seven years and as predicted, more government and more taxes haven't led to balanced budgets and economic growth. It's led to more government, more debt and less growth. Giving individuals, businesses and investors more money to sink into the economy does produce growth - giving them less money does not. As the old saying goes, the power to tax is the power to destroy. The ultimate snake oil is the trickle down government that Obama and his "progressive" comrades have been selling the American people, and Hillary Clinton and the socialist from Vermont are peddling more of the same. No thank you.
Cruz only wants this to apply to labored income, so of course it would not help any but a flat tax like I was proposing would solve that..... .
We can argue about the details, but the tax code does need to get simplified. As Carly Fiorina pointed out at the CNBC "debate", the only people benefiting from that code are wealthy entities that have armies of accountants to exploit the complexities and loopholes in the code to avoid paying taxes. I don't know if a Flat Tax or the Fair Tax is the solution, and I think it's unrealistic to think we can abolish the IRS right away. However, anything's better than the status quo, and shrinking a bureaucracy that the Left has turned into a weapon to attack its opponents and violate the constitutional rights of Americans has become a necessity. If anything needs to be abolished, it's ObamaCare. Cutting taxes isn't going to be enough - we have to reduce the size, scope and expense of government, as well. If the GOP assumes control of Washington in 2017, another thing it should do is introduce a Balanced Budget Amendment. The inroads the GOP has made at the state level makes the prospect of passage more likely than ever, and if Democrats want to vote against fiscal responsibility, let's get them on record and let them face the consequences the same way they have over ObamaCare.
Taxing the income from your work is slavery. Only profits are supposed to be taxable. When you work you exchange your time, knowledge and sweat in a fair exchange for money. I prefer a consumption tax
No, it's not. Don't be a drama queen. #1, says who? #2, aren't profits also a result of your work? So you prefer what is widely acknowledged to be one of the most regressive taxes around. Great.
What do you call it when you are forced to work for others with no pay? One more time you make no profit off working. You exchange your time, sweat and knowledge for money because money is convenient. Its a fair exchange just like yo dont get taxed on bartering. Move to a Progressive Consumption Tax | Cato Institutehttp://www.cato.org/publications/cato-online-forum/move-progressive-consumption-tax
Did I miss Obama hiking corporate taxes? In any case, these companies have left before and will continue to do so -- because labor is still cheaper in the far east. Until the wages in the US have come down to the same level. The only problem: The comapnies won;t have any customers here anymore, because few can afford to buy there products. Same as few in China can afford to buy their products at present.
Yes, yes, I'm familiar with all the bull(*)(*)(*)(*) "taxation is slavery" arguments. In a democracy (or "constitutional republic", as you probably insist), taxation is THE PEOPLE taxing THEMSELVES to pay for things THEY want to accomplish through this tool called "the government" -- which is US. Unless you think you can steal from yourself, taxation is not slavery in a representative democracy. I asked you what the difference between that and what you would call "profit" was. Some interesting ideas, but still highly regressive, because of the simple fact that poor people (by necessity) spend a much larger fraction of their income than the rich. So poor people would pay tax on their entire income, while the rich would generally pay taxes only on a fraction. It's a way to concentrate even more wealth in the hands of the 1%. And note that all their proposals still require calculating income, so the IRS doesn't go away in any meaningful sense. At least with a straight-up consumption tax (say, a sales tax collected at the register) you could get rid of the entire income-verification bureaucracy.
I think the tax code is cumbersome and needs to be overhauled. However, I am always suspicious of those that claim they are going to balance cuts over ten years and depend on "economic growth" to offset any loss of revenue. Long term economic growth projections out to 2060 are approximately 2% per year. Of course, individual years will vary and something may come along to dramatically change that percentage, but that's as speculative as some of the tax plans I have read. The real problem comes when those economic growth percentages don't meet expectation, but taxes have already been cut and the budget requires more.
Until you clearly define what "income" is, then this is more hot air. The devil in every plan out there is that they never define what is "income". Is it only what you are paid ? Is it investment gains ? Is it inheritance ?
It's much better than the convoluted mess we have today. If we were go to an ultra fair and simplistic flat tax why would we need to IRS (in it's current form)?
There would be no tax on food and other necessities We did fine with no income tax in fact its still unconstitutional and the current system in reality is an excise tax thats how they get around the direct tax prohibition
A flat tax would not eliminate the IRS as there would still be cheating and audits on reported income.
