![]() ![]() Universal savings accounts (USAs): This would be a new saving device available to American taxpayers from all walks of life.The tax would be based on revenue minus expenses such as equipment, computers and other business investments. Corporate income tax: The plan effectively repeals the corporate income tax system – now featuring a top tax rate of 35 percent - and replaces it with a simplified business flat tax of 16 percent.Cruz claims that funding for Social Security and Medicare would be guaranteed. Payroll taxes: As part and parcel of the flat tax rate, Cruz would completely eliminate payroll taxes in order to boost jobs and wages for working Americans.Certain other tax breaks - including the Child Tax Credit, the Earned Income Tax Credit (EITC) and deductions for charitable contributions and mortgage interest - would remain place. Under this method, the first $36,000 of income for a family of four would be tax-free. The personal exemption will be $4,000, the same as the rate for 2015 returns. The current seven-tier system for individuals would “collapse” into a single, low rate with a10 percent with a standard deduction will be $10,000. Flat income tax: The simple flat tax would eliminate the graduated rate structure.Here are some of the key components of Cruz’s tax plan unveiled on the presidential candidate’s website. ![]() Cruz’s tax plan was initially released to the Wall Street Journal and details can now be found on his website at. Rand Paul (Rep.-KY) had proposed a 14.5 rate. Among other dramatic proposals, the Texas senator would provide a universal savings account with no strings attached and abolish the IRS.ĭuring the debate, Cruz bragged that the 10 percent flat rate proposal is the lowest on record. Significantly, Cruz would institute a flat income tax rate of 10 percent and eliminate payroll taxes, replace the current corporate tax rate structure with a flat 16 percent rate, repeal the alternative minimum tax (AMT) and the taxes under the Affordable Care Act (ACA) – legislation he wants to completely scrap – and wipe estate taxes off the face of the earth for good. At the very least, the radical tax plan released by Cruz just prior to the debate tip-off is generating plenty of buzz. ![]() According to most media reports, Senator Ted Cruz (Rep.-TX) was one of the “winners” in the Republican presidential debate held on October 28. ![]()
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