Texas Senator and Republican presidential candidate Ted Cruz has presented his own tax plan for America. While the tax plans of the other candidates are quite impressive, Cruz’s is by far the most ambitious and pro-growth of them all.
Last weekend, Cruz was given the opportunity to explain what his tax plan encompasses. The most important part of the plan is a 10% flat tax. In contrast to a so-called fair tax, a flat tax means that everybody pays the same percentage to the federal government. In his case, that’s 10% — 4.5% less than Rand Paul’s plan.
Cruz’s plan is ambitious not only because America currently has a progressive tax system – meaning that ‘the rich’ not only pay more in absolute numbers, but also relatively – but also because the percentage he proposes is very low.
And that’s not all. Cruz also says that a family of four doesn’t have to pay a dime to Washington D.C. over the first $36.000 they make. They only start paying taxes when they make more. Note, that means that they have to pay 10% over every dollar earned above $36.000. So when the family’s provider earns $37.000 a year, he or she has to pay 10% of $1.000. That’s $100. In one year time. Or less than $8 per month.
Interestingly enough, the Fox Business personality who talked to Cruz about his tax reform plan accused him of making life easier for the big guy – millionaires who don’t need an extra buck, let alone an extra hundred thousand or two. She added that leftist politicians and other progressive hackjobs (read: the media) will use this as their main line of attack against Cruz’s ideas.
What’s amazing about that is that it proves that even at Fox News, it’s considered legitimate to shoot down a tax plan as long as ‘the rich’ benefit as much from it as the middle class and the poor. It doesn’t become more radical than that: it basically means they’re willing to burn the economy to the ground as long as ‘the rich’ go down with it.
What’s more, as Cruz explained during the interview, his plan doesn’t just ‘benefit the rich,’ but all deciles, meaning every single income group; from the very poor, to the upper middle class and everything in between.
“It would mean incredibly economic growth, and in terms of the results, my number one priority both in the Senate and as president is economic growth – because every other challenge we’ve got depends on growth.
“The simple flat tax that I am rolling out – a 10% flat tax for everyone – would produce 4.9 million new jobs over the course of a decade. It would increase capital investment by 44% and – critically – every income decile would see double digit increases in after-tax income: 14% or greater.”
He continued to explain that a single mom making $40.000 a year will keep $5,600 more than she she has now after she pays her taxes. She can use that amount to make ends meet, to provide for her kids, and to pay the bills. Lord knows parents – and especially single parents – can use that money, especially now in the Obama economy which has all but destroyed them.
Although Rand Paul has presented a wonderful tax plan – with a flat tax of 14.5% – Cruz’s plan sets a new standard for every conservative running for president, or thinking about doing so in the years ahead.