Ted Cruz on Tax Reform

Tax returns on a postcard

There are more words in the tax code than in the Bible

Eliminate payroll tax, death tax, business tax, and IRS

CRUZ: Rand is exactly right. His plan is a good plan, and I will note that my 10% plan also eliminates the payroll tax; eliminates the death tax; eliminates the business income tax; the 10% flat rate is the lowest personal rate any candidate up here has; and what it would also enable us to do is for every citizen to fill out their taxes on a postcard so we can eliminate the IRS.

Abolish the IRS

But it was the question about what Cruz would do as president that drew the most raucous response. "Repeal every blasted word of ObamaCare," Cruz said as he ticked off a list that included "abolish the IRS," "restore America's leadership in the world," get rid of "amnesty" in the immigration system, and reduce the "alphabet soup" of regulations.

Permanent Washington elite protects the tax code

Dewhurst: I've been involved in repeatedly cutting spending by billions and taxes by billions.

Cruz on Dewhurst income tax: In 2006, he told the Associated Press "I think I'd rather see a tax that's based on income."

Cruz: "It's interesting when people try to run away from their records. Dewhurst was dragged kicking and screaming to cut the budget."

Adopt a single-rate tax system.

The Contract from America, clause 4. Enact Fundamental Tax Reform:

Adopt a simple and fair single-rate tax system by scrapping the internal revenue code and replacing it with one that is no longer than 4,543 words--the length of the original Constitution.

Repeal tax hikes in capital gains and death tax.

The Contract from America, clause 10. Stop the Tax Hikes:

Permanently repeal all tax hikes, including those to the income, capital gains, and death taxes, currently scheduled to begin in 2011.

Supports the Taxpayer Protection Pledge.

[The ATR, Americans for Tax Reform, run by conservative lobbyist Grover Norquist, ask legislators to sign the Taxpayer Protection Pledge in each election cycle. Their self-description:]

In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. Since its rollout in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts. Today the Taxpayer Protection Pledge is offered to every candidate for state office and to all incumbents. More than 1,100 state officeholders, from state representative to governor, have signed the Pledge.

The Taxpayer Protection Pledge: "I pledge to the taxpayers of my district and to the American people that I will: ONE, oppose any and all efforts to increase the marginal income tax rate for individuals and business; and TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates."

Opponents' Opinion (from wikipedia.com):In Nov. 2011, Sen. Harry Reid (D-NV) claimed that Congressional Republicans "are being led like puppets by Grover Norquist. They're giving speeches that we should compromise on our deficit, but never do they compromise on Grover Norquist. He is their leader." Since Norquist's pledge binds signatories to opposing deficit reduction agreements that include any element of increased tax revenue, some Republican deficit hawks now retired from office have stated that Norquist has become an obstacle to deficit reduction. Former Republican Senator Alan Simpson, co-chairman of the National Commission on Fiscal Responsibility and Reform, has been particularly critical, describing Norquist's position as "no taxes, under any situation, even if your country goes to hell."

Opposes increasing tax rates.

Christian Coalition publishes a number of special voter educational materials including the Christian Coalition Voter Guides, which provide voters with critical information about where candidates stand on important faith and family issues. The Christian Coalition Voters Guide summarizes candidate stances on the following topic: "Increasing federal income tax rates"

Supports eliminating the inheritance tax.

Christian Coalition publishes a number of special voter educational materials including the Christian Coalition Voter Guides, which provide voters with critical information about where candidates stand on important faith and family issues. The Christian Coalition Voters Guide summarizes candidate stances on the following topic: "Permanent elimination of the "Death Tax""

Replace income tax and IRS with FairTax.

Congressional Summary: This bill imposes a national sales tax in lieu of the current income and corporate income tax, employment taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2017, with adjustments in subsequent years. U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon family size and poverty guidelines. No funding is allowed for the operations of the Internal Revenue Service after FY2019. Finally, the FairTax terminates if the 16th Amendment to the Constitution (authorizing an income tax) is not repealed within 7 years.

Supporters reasons for voting YEA: Rep. MORAN: I am all on board on tax reform, but the best solution is not tinkering with the current system; it is an overhaul of the current Tax Code. The FairTax, in my view, brings two goals front and center: to pass on to the next generation of Americans the freedoms and liberties guaranteed by our Constitution, and the opportunity for every American to live the American dream.

Opponents reasons for voting NAY: (by FairTaxWarrior.com):

• Criticisms from The Left
  • The FairTax rate is really 30%, not the 23% proponents say.
  • It's an additional national sales tax.
  • It's really just a windfall tax cut for the rich.
  • A sales tax is regressive, and punishes the poor unfairly.
  • It's just a scheme to let corporations escape paying taxes.
• Criticisms from The Right:
  • The FairTax does nothing to cut government spending.
  • The 23% rate is too high.
  • It 's the largest welfare increase in history [via the Family Consumption Allowance]
• General criticisms
  • The FairTax will negatively impact the housing market [by removing the mortgage deduction].
  • Black market activity will increase.
  • The IRS won't really be abolished.
  • The Flat (Income) Tax is a better option.
  • It will be a nightmare to transition to The FairTax from an Income Tax.