Friday, February 12, 2016

Taxes, Remember Those?

But it is hard to see why conservatives wouldn’t be excited about what Cruz and Paul have put forward. It’s what tax filers have been waiting decades for:
First, the Cruz/Paul plans would give America the lowest tax rates since the income tax was devised 100 years ago. For this reason, these plans are estimated by the Tax Foundation to grow the economy by a gigantic $2 trillion extra GDP per year after 10 years. That’s exactly the opposite effect of the Clinton and Sanders plans.
Second, both the Cruz and Paul plans eliminate almost all deductions and credits — which is how they get the rate so low. The IRS could be dramatically shrunk in size. Don’t forget, when there are fewer deductions, there are fewer ways to cheat on your taxes. The lower the tax rate, the less incentive to cheat, which means greater voluntary compliance.
Third, because the Cruz and Paul plans are “border adjustable”: Imports are taxed at the flat rate when they are brought into the U.S., but American products sold abroad are not taxed at all. This would level the global playing field for American manufacturers, tech firms and drug companies and bring these jobs scampering back home. Trump’s tariff ideas could be put back on the shelf, and those who want “fair trade” should celebrate.

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