Exclusions, deductions and preferences got layered on over time as Congressmen felt pressure to placate their constituents. While allowing for two deductions is certainly a huge improvement when compared to the monstrosity that is the current tax law, remember that our current law didn't start out with eight volumes of Code and regulations. Right away, Cruz is making concessions, and that is a slippery slope. When pressed recently for details about his tax plan, Cruz explained that, when computing the tax liability under the flat tax, Joe Sixpack would simply 'Put down how much you earned, put down a deduction for charitable contributions, for home mortgage and how much you owe.' For every exclusion, preference, or deduction in the current tax law, there is a powerful lobbying group behind it do you really think Cruz will risk the support of these voters by eliminating those deductions? Do away with charitable contributions? Churches, schools, and other charitable organizations are furious. Do away with the mortgage interest deductions? The real estate industry goes ballistic. One could fix that problem by simply levying the flat tax rate against gross income, but that's not how you win elections. Just because a tax is flat does not mean it is simple. Far from the top of the list of problems with our current tax system are the multiple tax rates assessed on taxable income rather, the struggle comes with navigating thousands of statutorily-provided exclusions and deductions to arrive at taxable income. But in 2013, Cruz seemed to shift his focus to a simplified income tax, by proposing a system where a taxpayer's filing obligation 'ought to be just a simple one-page postcard, and take the agents, the bureaucracy out of Washington and limit the power of government.”īut here's the thing: few flat taxes are as simple as advertised, and even fewer obviate the need for a governing body like the IRS. Saxby Chambliss (R-GA) that would replace the current income tax with a 23% national sales tax. Earlier in his career, Cruz embraced a national sales tax by signing as a co-sponsor a bill introduced by Sen.

While Cruz states his desire for a flat tax - a system where every taxpayer, regardless of income level, pays the same tax rate - like so many before him, he has never actually explained what his version of a flat tax entails.

Ted cruz flat tax