Why Ted Cruz believes his tax plan will work
The criticism of the flat tax model is that the average American would end up paying more as a result. According to Cruz, that’s not the case with his 10% flat tax. He says that his tax plan details that can be found on his website make a clear case for reduced taxes for everyone across the board, including those in lower income brackets.
The key to this is that $36,000 floor. It’s as straight forward as possible but even FoxBusiness host Trish Regan was a little confused by the report. She wrongly concluded that those making just over the $36,000 per year mark would be on the hook for higher taxes. As Cruz corrected her, anyone making over $36,000 would only have to pay the taxes on the money that they earned over that floor amount, so if someone made $36,001, they would pay 10 cents in federal taxes.
— Cruz Grassroots (@cruzgrassroots) November 7, 2015
For the layman, it’s hard to imagine how such a sharp reduction across the board could benefit the country and allow us to pay our bills. The Cruz plan has been endorsed by several economic and tax experts as well as one of the pioneers of the concept, Steve Forbes.
— JD Rucker (@0boy) November 5, 2015
It’s always hard to tell whether or not a tax plan would really work because it’s not in a vacuum. Much of the success or failure of a tax plan is based upon how the economy reacts. Based upon the Ronald Reagan and Jack Kemp templates that the plan is based upon, there’s definitely hope that Cruz has the right idea.