How will Cruz respond to the question about his 18% VAT on every stage of production and it's impact on the consumer. I've heard it said that companies don't pay taxes...consumers do. And he will point to that onerous 35% corporate tax rate that is paid AFTER companies have tweaked and twerked their financials to report a loss and pay nothing (remember GE???) and have it replaced with an 18% tax in every step of the process that they can't get out of. I have a funny feeling that companies won't lower their prices after they get their 35% tax cut...but since they'll be subject to tax they can't paperwork their way out of, will just pass it down the line until the consumer finds himself paying $118 for something that used to cost him $100. But not to worry...Ted wants an across the board flat tax of 10% for everybody.
And I HAVE looked at his tax plan....he gave in some because the initial plan was to eliminate the mortgage interest deduction - the one thing that middle class filers had to allow them to lower their taxable income more than the standard deduction. If anything, the Cruz tax plan proves that he will get middle class backers by dangling that carrot of a tax cut to the middle class, that would result in a reduction in income tax of maybe 5% for the middle class...but will allow for a tax cut of 30% for the top tier. And in fairness...EVERYBODY will be subject to the passed along 18% VAT on the money they spend (which sadly for most in the middle class is just about the same amount as their take home pay). So for them, the net effect will be an INCREASE of about 13% while the top folks actually will realize a tax cut of about 15 to 20% or more, since most of them aren't living paycheck to paycheck.
But that carrot....a tax cut for ME????? See...they really DO care about the middle class.
