Cruz tax plan

[popeyespappy]

I'm not a fan. The Tax Policy Center estimates that the Cruz plan would reduce government revenue by $8.6 trillion over the first 10 years, and an additional $12.2 trillion over the next 10.

“Imagine 4.9 million new jobs. Instead of Obama’s income stagnation, imagine average wages rising 12.2 percent over the next decade. Capital investment rising 43.9 percent. And every income-level seeing double-digit increases in after-tax income. Imagine exports and manufacturing jobs booming. Our trade deficit falling as the tax bias against American made goods is eliminated. Imagine a 10 percent income tax, with every American filling out his or her taxes on a postcard or iPhone app. And abolishing the IRS as we know it.”

I think the growth numbers Cruz cites are a pipe dream, and if the Fed can't replace the lost revenue you can forget about driving the economy into a ditch. We'll be driving it over a cliff.