Wednesday, February 17, 2016

FYI





"The information of the people at large can alone make them the safe as they are the sole depositary of our political and religious freedom." --Thomas Jefferson to William Duane, 1810.

“To the extent that we are all educated and informed, we will be more equipped to deal with the gut issues that tend to divide us.” Caroline Kennedy

It is with the above in mind that I am posting this article. Let us not be bamboozled.

 From the Tax Policy Center

“The Tax Policy Center has analyzed presidential candidate Ted Cruz's tax proposal. The plan would (1) repeal the corporate income tax, payroll taxes for Social Security and Medicare, and estate and gift taxes; (2) collapse the current seven individual income tax rates to a single rate of 10 percent, increase the standard deduction, and eliminate most other deductions; and (3) introduce a new 16 percent broad-based consumption tax. His proposal would cut taxes at most income levels, but the largest benefits, measured both in dollars and as a percentage of after-tax income, would go to the highest-income households. The lowest-income households (those in the bottom 20 percent) would see little change in their taxes, and possibly a slight increase. Federal tax revenues would decline $8.6 trillion (3.6 percent of gross domestic product) over a decade, assuming no change in economic growth.”
It would seem to me that the 16% consumers tax would be like a  VAT and its impact percentage wise would be on the lower income class.

My take is that although it sounds great; the kicker is the 16% Consumption tax which may be another  term for a VAT (Value Added Tax) which Cruz denies. The greatest percentage impact is of course on the middle and  working classes and may increase the actual amount of their income that goes to taxes.

After writing that comment I found this in the Washington Post.
"Republican Presidential candidate Ted Cruz’s plan to impose a flat 10 percent tax on all personal income and greatly lower the corporate tax rate would cost the federal government at least $8.6 trillion over a decade, according to a new analysis.
The plan would be the second most expensive tax proposal in the GOP presidential field, with only businessman Donald Trump offering a proposal that would add more in government debt over the next 10 years."
It would seem to me that the 16% consumers tax would be like a  VAT and its impact percentage wise would be on the lower income class.


It would seem to me that the 16% consumers tax would be like a  VAT and its impact percentage wise would be on the lower income class

1 comment:

  1. And let us not forget Mark Twain, "“If you don't read the newspaper, you're uninformed. If you read the newspaper, you're mis-informed.” (In this day and age there is plenty of mis-information coming from tvs, radios and especially the internet!)

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