The Cruz Missile

[-Jrabbit]

This is all political posturing, and very little of it is serious. If the Republicans were serious about tax reform, at least one of the sitting US senators/reps currently running for POTUS would/should/could have introduced - and maybe passed - legislation to that effect. But:

They know that tax law is complex, and most voters prefer something simple.
They know the people hate the IRS, so "I will abolish the IRS" becomes part of every stump speech.
They know their crowds hate Obama, so they call him "weak" and claim they will "kick him out" after his 2-term limit is up anyway.

These are just crowd-rallying talking points. So please don't confuse campaign tax "plans" with reality. While a couple might reflect actual thought and intent on the candidate's part, these are generally designed to attract voters, nothing more. And yes, that goes for the Dems, too.

[Kidlicious]

A 16% VAT will raise prices on the goods those businesses produce. Thus, it will hit consumers more than savers. Under Cruz's plan, I know that my taxes would decrease by a lot. Cruz's plan would require drastic reductions in government services or a dramatic increase in government debt.

It would cost about $750 billion over 10 years. I think abolishing the IRS alone is worth that.

[pchang]

Abolition != shrinking and renaming

If you really think the IRS would truly be abolished, you are naive.

[giblets]

It would cost about $750 billion over 10 years. I think abolishing the IRS alone is worth that.

How will the federal government collect taxes once the IRS is abolished?

[Kidlicious]

A new entity will be created with less power.

[-Jrabbit]

Who told you that? How can you trust that?

Talk about naïve...

[giblets]

A new entity will be created with less power.

What power does the IRS have that it shouldn't?

[rah]

They'll call it the IRs

[pchang]

There was an old Benny Hill skit where he calls into Inland Revenue (UK equivalent of the IRS) and he says, "But, I live on the coast....."

[KrazyHorse]

A 16% VAT will raise prices on the goods those businesses produce. Thus, it will hit consumers more than savers. Under Cruz's plan, I know that my taxes would decrease by a lot. Cruz's plan would require drastic reductions in government services or a dramatic increase in government debt.

It looks like about 700 bucks over ten years with dynamic scoring according to the tax foundation, or 3.6 trillion with static assumptions.

The best news is how it would **** the boomers

[pchang]

I already subsidized the parents and am currently subsidizing the in-laws. I guess all the others can fend for themselves.

Btw, how exactly would it screw the boomers?

[KrazyHorse]

Consumption tax double taxes people who saved and are now spending their savings....

[KrazyHorse]

So, they paid on the way in, they paid dividend and cap gains taxes on way up and will now pay on the way out. SWEET.

[giblets]

And in forty years we can switch back to income tax

[-Jrabbit]

So, "fvck the other guy; should be better for me."
Nice philosophy. So sweet.