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Presidential Issues: Taxes


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Ted Cruz’s and Rand Paul’s Strange Embrace of the VAT

November 4, 2015

By Chris Edwards

Senators Ted Cruz and Rand Paul are strong advocates of limited government. They are gifted spokesmen for free markets, and they are heroes for taking on the GOP establishment on issues such as overspending and civil liberties.

That is why their embrace of the value-added tax (VAT) in their presidential campaigns is so baffling. VATs are the revenue engine of big-government welfare states, not a proper funding source for the small federal government that both senators favor for America.

Cruz and Paul propose to rip up the current tax code and replace it with individual income taxes at low, flat rates — Cruz at 10 percent and Paul at 14.5 percent. Their plans would repeal the estate tax and corporate income taxes, while reducing the overall tax load. So far, so good.

But then we come to the VAT, which the candidates hide behind innocuous names — “business flat tax” for Cruz and “business transfer tax” for Paul. Actually, Paul’s title is accurate, because these taxes would “transfer” trillions of dollars into government coffers unseen by most citizens.

Read the full article at National Review Online: Ted Cruz’s and Rand Paul’s Strange Embrace of the VAT

Issue Categories : Rand Paul, Taxes, Ted Cruz