Death comes to us all. Life's but a walking shadow | Whenever you hear the words "Flat Tax" you need to be very careful. In any "con" the most important feature is misdirection. Distract the attention away from what you are actually doing. This is what Cruz is doing here. It is one thing to say you favor a flat tax and then it is quite another to actually even try to implement it after being elected. Ted Cruz knows that the President doesn't write tax legislation, Congress does. As far as I know nobody who ever proposed a flat tax in a campaign ever subsequently introduced legislation to that effect let alone try to get it passed.
The next question is: Ted seems to favor immediate expensing of all expenses. Does this even make any real sense? For instance, if you build a factory and expense the whole project the day it starts operation you essentially are expensing all you expenses before you have any income. What are you going to do next year and the years after that when you supposedly have income? Pay tax on all that income? What rational business person wants to do this? The whole purpose of depreciation was to match large initial capital expenses with the expected subsequent income.
This leads you to suspect that either Ted's business supporters have something else up their sleeves or it's just so much meaningless campaign rhetoric designed to attract idiots. |
cruz and ethanol subsidies question
