Contact CU Independent Staff Writer Jake Mauff at Jacob.Mauff@colorado.edu.
Prior to the debate, Ted Cruz published his economic plan in the Wall Street Journal. This policy helps keep ground with those ahead of him in the GOP race, and was briefly mentioned at the Oct. 28 GOP Debate in Boulder, CO. Trump, along with other leading RNC candidates, has a very thorough economic plan that has been announced for some time.
In the short time he had to answer questions, Cruz mentioned his article and the most general parts of his plan. In theory, there would be a 10 percent flat tax for individuals and a 16 percent flat tax for businesses.
In the debate, Cruz wasn’t allowed to elaborate. His plan, according to him, is reminiscent of the tax cut Ronald Reagan made during his time as president. In that time, called by Cruz, the “Seven Fat Years,” the economy grew every year at historic rates, according to the Wall Street Journal article.
The Texas senator proposed an economic plan that would be so simple, taxes could be done on a post card or on an iPhone app. This simple plan would allow Cruz to abolish the IRS. There would still need to be some sort of agency that collects taxes, but Cruz has stated that this simple plan would inhabit some smaller section of the Federal Reserve, presumably to just collect the post cards and app responses.
Cruz is calling his plan the “Simple Flat Tax.” In addition to the percentages involved in his plan, Cruz states that a family of four would not have to pay for the first $36,000 the family earns. Also, the 10 percent number would count on the income received from investing as well.
This article stresses the 16 percent flat tax on businesses. If implemented, the tax system means a locally owned businesses would pay the same percentage as a major corporation. This doesn’t mean that the companies will pay the same amount, it means proportional amount.
In addition, the business flat tax would apply to imports. Exports would be free. This will also change the tax system of corporations relocating overseas. Cruz is hoping this will incentivize these companies to not leave America.
Cruz also confirmed that his tax system will have deductibles for charitable giving. There is also a deductible for home-mortgage interest on the first $500,000.
In the article, Cruz says his plan will create 4.9 million jobs in a decade. In that same time period, average wages will increase by 12.2 percent. The economy will grow 13.9 percent.
There is an interesting idea in this plan. Every year, a person can make defer $25,000, similar to an Individual Retirement Account. This person can use this money whenever they want. Cruz is hoping this will be used for the generation after the depositors. He wants this generation to save and invest this money and add to the economy.
The plan also calls for some Tea Party ideas that Cruz has been known to support. He calls for the repeal of the estate tax and the alternative minimum tax. These taxes would only be applied to the wealthiest people in the country.
As with every Tea Party ideal, Obamacare will be repealed. Cruz believes this will help the economy grow.
One question from the debate stand out. It was asked what Cruz would do to the Federal Reserve. In response, Cruz mentioned that the Fed should be audited. He mentioned a bill he cosponsored which was introduced to the Senate by fellow GOP candidate Rand Paul.
Most surprisingly, Cruz asked for the economy to be put back onto the gold standard. The country went off the gold standard in 1933. FDR was president at the time.
On most of these topics, Cruz rushed through what he was trying to say to appeal towards the audience. He drew applause but did not give specifics. In response to woman’s pay, Cruz offered to help the fight. He did not mention how he would.
Quite possible his biggest applause of the nights, Cruz asked for the other candidates to stop fighting each other and get to fighting the issues. This garnered audience support.
With closing statements, the Texas senator said he would lead the fight against Washington. He offered times when he had been a voice for his ideals, offering the time he called for the defunding of Planned Parenthood, among others.
Overall, Cruz did a good job appealing to the fans while offering some of his economic insights. Some polls held quickly after the debate show Cruz doing very well in the debate. His numbers will likely increase in the coming days. This should garner a grade somewhere in the vicinity of a high “B” or low “A.”