Ted Cruz
By: Adrianna Toledo
Ted Cruz's Education
Why he Chose to Enter the Race
Ted Cruz on Gun Control
Ted Cruz on Immigration
Ted Cruz on Economy
Ted Cruz would enact a 10 percent flat tax on individual income and replace the corporate income tax and all payroll taxes with a 16 percent Business Transfer Tax, or subtraction method value-added tax. In addition, his plan would repeal a number of complex features of the current tax code. He says the plan would cut taxes by $3.6 trillion over the next decade on a static basis. However, the plan would end up reducing tax revenues by $768 billion over the next decade when accounting for economic growth from increases in the supply of labor and capital and the much broader tax base due to the new value-added tax. The plan would significantly reduce marginal tax rates and the cost of capital, which would lead to a 13.9 percent higher GDP over the long term, provided that the tax cut could be appropriately financed.