In the wake of his CNBC debate performance on Wednesday night, Senator Ted Cruz (R-TX) had an article published on the pages of the Wall Street Journal. The article focused on the desperate need our nation has for tax reform and on Cruz’s plan to revitalize our failing economy.
The problem, Cruz argues, is that President Obama and the Democrat Party have pushed for and instituted crippling liberal policies that have only served to hinder our economic recovery. From taxes, to regulations, to causing market instability – every course of action taken by the liberals during the Obama years has inflicted ever deepening damage upon the American people. Cruz believes it’s time for that pain to cease.
Imagine 4.9 million new jobs. Imagine, instead of President Obama’s income stagnation, average wages rising 12.2% over the next decade. Capital investment rising 43.9%. And Americans at every level of the economy enjoying double-digit increases in after-tax income.
Imagine exports and manufacturing jobs booming. The trade deficit falling as the tax bias against American-made goods is eliminated. Imagine a 10% income tax. Every American filing his or her taxes on a postcard or an iPhone app. And abolishing the IRS as we know it.
All of this is possible if we learn from the past and follow the example of what works…
With these goals in mind, based on a structure suggested by President Reagan’s tax adviser, Arthur Laffer, my Simple Flat Tax plan features the following:
- For a family of four, no taxes whatsoever (income or payroll) on the first $36,000 of income.
- Above that level, a 10% flat tax on all individual income from wages and investment.
- No death tax, alternative minimum tax or ObamaCare taxes.
- Elimination of the payroll tax and the corporate income tax, to be replaced by a 16% Business Flat Tax. This would tax companies’ gross receipts from sales of goods and services, less purchases from other businesses, including capital investment. Simple, efficient, fair.
- A Universal Savings Account, which would allow every American to save up to $25,000 annually on a tax-deferred basis for any purpose…
According to the nonpartisan Tax Foundation, my tax plan would boost the size of the economy above current projections by 13.9% over a decade, add 4.9 million jobs and increase average wages by 12.2%. Every income group would get a double-digit wage increase.
Along with other pro-growth policies—repealing ObamaCare and Dodd-Frank, rolling back burdensome regulations, restoring sound money and restraining spending—the Simple Flat Tax will help the economy soar again.
Reagan did it in 1981, and we can do it again. I intend to take it to the people: a simple flat tax, to benefit every American.
The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by EagleRising.com