The Ted Cruz Simple Flat Tax plan

David Adams writes at Timbers Conservatives,

What a great time to discuss Taxes! April 15th is on the horizon. The Wyoming Cowboy Tea Party was initiated that day 7 years ago. Washington has promised Tax Reform for a decade or more. We all know that the Tax Code favor s businesses and individuals with deep pockets and which are politically connected. We all know the IRS is corrupt – it just hasn’t gone to prison (yet). Ted Cruz offers us a Simple Flat Tax code as part of his campaign strategy. This seems like a fitting moment to outline it.

Ted Cruz – “Simple Flat Tax”

INCOME:

1. No income tax on first $36,000 (family of 4)

2. 10% Flat Personal Income Tax (above $36,000)

3. All income (wages, investment, cap gains,…) taxed at the same 10% rate.

4. Earned Income Tax Credit, anti-Fraud protection & Pro-marriage reforms.

5. Child Tax Credit retained

6. Social Security and Medicare – retained.

7. Universal Savings Account (USA) $25,000/year – tax deferred.

8. Profits earned abroad will not be taxed (?)

EXPENSES:

1. Standard Deduction per filer = $10,000

2. Mortgage Interest deduction – retained 3. Charitable deduction – retained

4. Estate Tax – repealed.

5. AMT – repealed.

6. ObamaCare Tax – Repealed

7. No Internet Tax

8. 16% Business Transfer Tax replaces Corporate Income Tax.

9. Immediate expensing of business equipment

10. Loopholes, depreciation schedules, multi-tiered tax rates on income & investments – eliminated.

11. The IRS would cease to exist in current form.

1 https://www.tedcruz.org/tax_plan/

2 http://taxfoundation.org/comparing-2016-presidential-tax-reform-proposals

Contact David Adams and ask for a free subscription to his newletter to read more about the Cruz plan, including Cruz's simple postcard for filing income tax returns.