Cruz tax plan would slash U.S. revenue, favor wealthy: analysis
A tax plan proposed by Republican presidential candidate Ted Cruz would cut federal revenues by $8.6 trillion over 10 years, adding substantially to the debt, according to an analysis published on Tuesday by a nonpartisan research center.
Cruz's plan, unveiled in November, would create a flat 10 percent individual income tax that with other changes would mainly benefit high-income households, the study by the Washington-based Tax Policy Center found. (tpc.io/1ToCN7M)
Other changes include repealing the corporate income tax, as well as payroll taxes for Social Security and Medicare, and estate and gift taxes; increasing the standard deduction and eliminating most other deductions except for mortgage interest and charity; and adding a broad-based 16 percent value-added consumption tax.
"The plan would cut taxes at most income levels, although the highest-income households would benefit the most and the poor the least," the Tax Policy Center said.