Tag: taxes

Contributor Post Created with Sketch. Why Ted Cruz’s VAT Really Is a VAT

 

DebateThursday’s GOP presidential debate in South Carolina featured a feisty back-and-forth between Ted Cruz and Marco Rubio concerning Cruz’s tax plan. Rubio said Cruz’s “business flat tax” is really a value-added tax that will blindfold “the American people so that they cannot see the true cost of government.” Cruz argued that a VAT is “a sales tax when you buy a good,” and his new tax is instead “imposed on on business.”

Make no mistake here. Cruz is proposing a VAT add-on to the existing personal income tax system. Specifically, it’s a “subtraction-method” VAT. Cruz explained it pretty accurately in a Wall Street Journal op-ed. A business would pay a 16% tax on its “gross receipts from sales of goods and services, less purchases from other businesses, including capital investment.”

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Hillary is currently campaigning saying that “we would all be better off if we went back to the economic policies of the 90’s”. Clearly, she wants to raise taxes on 98% of the population, while letting the top 2% off scot free. (The Bush tax cuts applied to the entire population. They were subsequently eliminated […]

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Contributor Post Created with Sketch. Is There a Real Alternative to the Ideas of Trumpism?

 

RTX1ZP41_trump_supporters-e1451321671210Let’s posit that Donald Trump’s polling power — particularly among white working-class voters — mostly reflects that group’s economic troubles and anxieties about the future. What sort of economically-sound agenda might resonate with these voters? Something other than border walls, immigrant roundups and deportation, and trade wars with Asia.

In his much buzzed-about The Atlantic piece, David Frum tries to outline just such an agenda:

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Contributor Post Created with Sketch. Study: Trump Tax Plan Would Add $34 Trillion to National Debt

 

An analysis of Donald Trump’s tax plan from the Tax Policy Center (as summarized by the WSJ):

Donald Trump’s tax plan would cut federal revenue by $9.5 trillion over a decade and boost the after-tax incomes of the wealthiest households by an average of more than $1.3 million a year, according to an analysis released Tuesday. Mr. Trump’s plan, which would cut tax rates and push millions of households off the income tax rolls, would reduce federal revenue by 22%, requiring either significant new borrowing or unprecedented spending cuts. … “The revenue losses from this plan are really enormous,” said Leonard Burman, director of the nonpartisan Urban-Brookings Tax Policy Center, which released the study. A bipartisan panel reviewed the report before its release. Mr. Trump’s website says his plan would be revenue-neutral. The center’s analysis shows otherwise.

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Contributor Post Created with Sketch. Bernie Sanders, Democratic Socialism, and the Left’s High-tax Future for the US Middle Class

 

RTX1ZF6L_berniesanders_dem_debate_dec192015-e1450715133604During the weekend’s Democratic presidential debate, Hillary Clinton expressed skepticism about the cost of Bernie Sanders’s spending plans, particularly his $15 trillion single-payer health plan: “Free college, a single-payer system for health, and it’s been estimated we’re looking at $18 to $20 trillion, about a 40 percent increase in the federal budget.”

In response, Sanders argued that “it is unfair simply to say how much more the program will cost, without making sure that people know that we are doing away with cost of private insurance, and that the middle class will be paying substantially less for health care on the single-payer than on the Secretary’s Clinton proposal.”

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Contributor Post Created with Sketch. The Current State of GOP Tax Cutting

 

RTX1XSKW_jeb_bush-e1449758498928The Tax Policy Center offers its modeling of the Jeb Bush tax cut plan:

The Tax Policy Center estimates the proposal would reduce federal revenue, before considering any macroeconomic feedback effects, by $6.8 trillion over its first decade and an additional $8.6 trillion over the subsequent 10 years. About 60 percent of the revenue loss would come from individual income and payroll taxes and most of the rest from the corporate income tax.

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Contributor Post Created with Sketch. What to Do About US Firms Moving Overseas to Pay Lower Tax Rates

 

RTX1VHPR_Pfizer-e1448306821641New York-based Pfizer and Dublin-based Allergan are merging in a mega-inversion deal to create the world’s biggest drug maker based on sales.

To take advantage of Ireland’s low 12.5 percent corporate tax rate, the two companies will combine under Allergan, though the entity will be called Pfizer PLC and trade under Pfizer’s current NYSE ticker symbol. According to the WSJ: “Pfizer expects the combined firm to have an adjusted tax rate of between 17% and 18%, lower than its current 25 percent rate, among the highest in the industry.” And here is the kicker:

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Promoted from the Ricochet Member Feed by Editors Created with Sketch. Giving Thanks For Congress

 

Screen Shot 2015-06-12 at 12.56.48 PMEvery Thanksgiving I sympathize with lobbyists: can you imagine sharing their obligation to feel grateful for Congress? Amidst the vast, un-American growth of the administrative state, the world’s greatest deliberative body continues to do what it does best: taxing our children and passing the savings onto us.

The distinction progressives make between public and private is a false one. Many Americans know what it’s like to struggle beneath the weight of debt: not a day that goes by when my mailbox isn’t stuffed with offers from Visa or MasterCard informing me that I have been pre-declined.

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In the debate on Tuesday I couldn’t square how Ted Cruz could state that his 10% flat income tax plan (that also eliminates payroll taxes) was revenue neutral when scored dynamically. Well two articles by Steven Moore and Ramesh Ponnuru on NRO really helps explain what is going on. Basically both Ted Cruz and Rand […]

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Contributor Post Created with Sketch. Flat Taxes and Gold: A Few Thoughts on Ted Cruz’s Economic Plan

 
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U.S. Senator Ted Cruz, Republican of Texas, speaks at the First in the Nation Leadership Summit in Nashua, NH, April 18, 2015. Andrew Cline / Shutterstock.com

Full disclosure: I have written critically of the flat tax and gold standard as appropriate policy choices for the modern US economy. Frequently, in fact.

So there goes Ted Cruz in Wednesday’s debate endorsing both policies (kind of regarding the gold standard): “If you want a 10 percent flat tax where the numbers add up, I rolled out my tax plan today. … And I think the Fed should get out of the business of trying to juice our economy and simply be focused on sound money and monetary stability, ideally tied to gold.”

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Contributor Post Created with Sketch. On Ben Carson and Taxes

 

Ben CarsonI am in Boulder for the CNBC-hosted Republican presidential debate, on which I will be offering insights in my role as an on-air contributor.

I have written quite a bit about Donald Trump, Marco Rubio, and Jeb Bush. But not so much about Ben Carson, who leads in Iowa and in one national poll. Not so bad for the good doctor. But where is he policy-wise?

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Contributor Post Created with Sketch. Member Post

 

By now you are aware that Canada just elected a Liberal. Claire Berlinski’s and Dan Hanson’s excellent posts cover the election and who Justin Trudeau is. Conservatives have always pointed to proof of left wing bias in mainstream media. In the United States there are probably no more than a handful of mainstream media outlets which tilt […]

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Member Post

 

Gov. Jindal released his tax plan via Forbes Op Ed. I’ve only read his piece at Forbes, not dissected the entire plan in detail, and my first impression is Wow, get this gentleman to the main stage ASAP. H/T to the Main Feed Twitter scroll for including Gov. Jindal’s announcement. Jeb! and Trump – please go […]

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Contributor Post Created with Sketch. Red Ink Alert: So Donald Trump Wants to Slash Taxes and Leave Medicare Alone?

 
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People holds signs as Republican presidential candidate Donald Trump speaks during a news conference to reveal his tax policy at Trump Tower in Manhattan, New York September 28, 2015. REUTERS/Shannon Stapleton.

Even with dynamic scoring, Donald Trump’s tax plan is likely to lose a ton of money. (And, yes, I am dismissing out of hand Trump’s 6% growth claim. Please.) But Trump isn’t counting entirely on faster economic growth to make the numbers work. As he pointed out in the WSJ yesterday:

Finally, this plan will not add to our deficits or to the national debt. With disciplined budget management and elimination of waste, fraud and abuse, this plan will allow the nation to balance the budget, boost the economy to record levels, clear the backlog of workers sitting at home and begin the process of reducing the debt

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Promoted from the Ricochet Member Feed by Editors Created with Sketch. Trump’s Tax Plan: The Good, the Bad, and the Not-that-Bad

 
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Andrew Cline / Shutterstock.com

Here are the highlights of Donald Trump’s tax plan, announced today, interspersed with a few comments from me:

If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax. That removes nearly 75 million households – over 50% – from the income tax rolls.

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Contributor Post Created with Sketch. The Libertarian Podcast, with Richard Epstein: “On Trump and Taxes”

 

Are members of the hedge fund crowd really just getting lucky by pushing paper around? Is the tax treatment of carried interest a national scandal? Is there a principled case for taxing capital gains at a different rate than ordinary income? And what’s the right approach to take towards comprehensive tax reform? Those are some of the questions I explore with Professor Epstein this week as we examine Donald Trump’s criticisms of financial elites. Listen in below or subscribe to The Libertarian podcast via iTunes.

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Yes, this makes perfect sense to liberals. More

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Contributor Post Created with Sketch. Should Republicans Be Focusing Way More on Deregulation Than Tax Cuts?

 

Republicans are sort of boxed in when it comes to taxes. For three decades, tax cuts have been the party’s core issue, and a winning one at that. It helped give the party two two-term presidents and control of Congress after decades in the minority. But today (a) the top rate is 40%, not 70% as it was in 1980; (b) more than 40% of Americans pay no income taxes; (c) federal debt, as a share of GDP, has more than doubled since 2007; (d) a tsunami of entitlement spending is coming; and (e) the American public doubts the pro-growth impact of high-end tax cuts.

RegulationsSoaring-e1442246209687

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Contributor Post Created with Sketch. Jeb Bush’s Big Tax Plan Has Something for Everyone

 

shutterstock_296439938Jeb Bush will not be offering American voters a fantasy tax plan. Unfortunately, this is a detail too often worth noting when examining Republican tax ideas. Bush’s economic blueprint, announced this week, doesn’t replace the current income tax with a flat tax, a national sales tax, or some other tax based on a close reading of the biblical Book of Deuteronomy.

Rather, if you assembled a random group of smart, GOP-leaning economists and told them to cook up a plan to boost long-term economic growth, their recipe would likely resemble Bush’s “Reform and Growth Act of 2017.” Which is why the Bush plan kind of also looks like the Mitt Romney plan from 2012. Like Romney, Bush would reduce the top tax rate to 28 percent while also reducing corporate and investment tax rates. The theory here is that more investment would increase productivity and economic growth. One of the especially disappointing features of the current recovery has been the lack of business spending and weak productivity gains — at least as officially measured.

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Contributor Post Created with Sketch. Indigo Labor Day

 

shutterstock_87947731The front-page headline caught my attention: “Tide may be turning for working-class Americans.” Really? We just learned on Friday that a record 94 million Americans are not participating in the labor force. How can this be good news seven years after the Great Recession? Bloomberg columnist Al Hunt explains why we are in fact on the verge of Morning in America, Obama-style:

On the surface, this Labor Day holiday caps another dark year for U.S. unions and many working-class Americans.

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