Senator Ted Cruz's tax plan would bring America back to the George W. Bush era economically, if not the Ronald Reagan era. Let's not go to either place.
In the most recent Republican presidential debate, the Texan again trumpeted a plan calling for a flat 10 percent personal income tax and a 16 percent corporate tax rate, which is dramatically lower than the current rate. On Tuesday, the nonpartisan Urban Brookings Tax Policy Center asserted that the policy would cost the federal government at least $8.6 trillion in lost revenue over a decade. The top 0.1 percent of income earners would enjoy a 23 percent tax cut under the Cruz plan.
According to the Center analysis, to balance the budget, the Cruz plan would require discretionary spending to be cut by two-thirds, which isn't happening. What would happen is an explosion of a federal deficit that has been reduced significantly from the George W. Bush era by President Obama.
The Cruz camp complains that the Tax Policy Center doesn't account for the economic growth that will result from the tax cuts, The Center didn't because Presidents George W. Bush and Reagan proved unequivocally that tax cuts don't spur the economy. While the Tax Foundation has backed the Cruz tax plan, that group has a right-wing bias and lacks the credibility of the Policy Center. Add Senator Cruz's tax proposals to the reasons to fear his election.