Ted Cruz on Taxes
SG Cruz has stated that he supports a dramatic reform of the tax code. As part of a 12 point economic plan, SG Cruz has stated that the corporate tax rate in America is too high and that it needs to be addressed so that companies are not simply keeping money overseas. He states that he supports making the corporate rate 15%. He also stated that he would champion tax reform and support moving as close as possible to a flat tax or a fair tax system for personnal taxation.
In October of 2011, SG Cruz stated in a debate that the current tax system taxes productivity and subsidizes sloth. In May of 2012, he was asked in an interview to clarify some of these positions and confirmed that he would support a flat tax system that still maintains the mortgage interest and donation tax credits.
12 Point Plan
In September of 2011, SG Cruz put out a 12 point plan to highlight his economic goals. Two of those points dealt with taxes. He asserted in that plan that the corporate rate was too high and that the overall tax code was too complicated and that the US should move as much as possible to a flat tax or a fair tax.
7) Slash Corporate Tax Rates. Right now, U.S. corporations face the highest tax rate in the developed world, and they face double taxation if they invest their profits in America. As a result, American companies are today keeping over $2 trillion overseas. With over 25 million Americans out of a job, a tax policy that punishes new U.S. investments and factories is utterly nonsensical. We should cut corporate tax rates—to 15% immediately—to spur new investment and create new jobs in America.
8) Champion Tax Reform. The tax code is too complicated, the IRS too powerful, and lawyers and accountants too expensive. We should dramatically simplify the tax code and move as close as possible to a flat tax or to the Fair Tax.
Wedgewood Church Debate
In October of 2011, SG Cruz participated in a debate at the Wedgewood church. When speaking about his overall views, he stated that he would support ending the IRS and moving to a flat tax or a fair tax. In a later question, he stated that our tax code is an abomination.
Hot Air Interview
In May of 2012, SG Cruz was interviewed by Hot Air and asked about his tax policy. He statest that he supports a flat tax, and that he also supports keeping the tax credits for donations and mortgage interest deduction.
DS: Your website says you support a flat income tax. Are there any credits or loopholes that should be kept in the code? Charitable donations and the mortgage interest deduction, for example?
TC: Those two should stay. They are necessary in order to get a flat tax enacted.
The current IRS code needs to be entirely revamped. It’s designed to keep politicians in power. Lobbyists go to career politicians to manipulate the tax code for special exemptions, and then career politicians say “Of course I’ll help you out. When I am finished doing that, can you please come to my fundraiser?” This breeds enormous power for elected officials and for lobbyists. I want politicians who say “No, build a better mousetrap and succeed in the marketplace instead of manipulating the tax code.”