Ted Cruz in CNN debate: taxing the rich 100% isn’t enough to pay for socialism

Ted and Heidi Cruz have a plan to simplify the tax code

On CNN, you get anti-conservative propaganda 24 hours a day. The only exception are the policy debates they sometimes air, in which intelligent conservatives get to speak. Past debates have featured Senator Ted Cruz of Texas, who is the most intelligent conservative debater in the USA. On Tuesday night, Cruz was joined by Senator Tim Scott of South Carolina, another able conservative. They debated two radical leftists – Bernie Sanders and Maria Cantwell.

The Washington Examiner had an excellent summary.

Excerpt:

Sen. Ted Cruz sniped at Sen. Bernie Sanders’ often-used complaint about “millionaires and billionaires” not paying enough in taxes during the CNN town hall debate on Tuesday, and quipped there aren’t enough of them to “pay for all the socialism that Bernie and the Democrats want to give away.”

The comment came as Cruz, R-Texas, took aim at the line of attack favored by Sanders, I-Vt., and the Democrats against the GOP tax reform about how it’s a tax cut for “the rich,” but Cruz said that really means it is a tax cut for “taxpayers.”

“Democrats have one talking point on taxes: It’s a tax cut for the rich,” Cruz began. “And they say it over and over and over again in response to everything. The most important thing for you to know when you’re at home is when they say rich, they mean taxpayer. Every time they say ‘rich’ they mean taxpayers.”

“Why is it? Because the very rich — there aren’t enough of them,” Cruz continued. “Bernie ran for president, he rolled out a tax plan. His tax plan was a massive tax increase. If you took every single person in America making over a million dollars, and you taxed them 100 percent of their income, you took every penny they earned — you came in in jackboots and confiscate it — it would pay 8 percent of the cost of Bernie’s tax plan. You know where they get their money? They get it from you, they get it from the the middle class.”

Cruz went on to cite a quote from his and Bernie’s prior CNN debate in which Sanders, while describing his preferred tax plan, said “everybody will pay some more.”

“You’re a single mom, you’re working, he says you’re going to pay some more,”‘ Cruz said afterwards. “You’re a small business owner, he says you’re going to pay some more. And the reason is, there aren’t not enough millionaires and billionaires to pay for all the socialism that Bernie and the Democrats want to give away.”

[…]”You said we’re going to tax the middle class but then you said, ‘we the Democrats are going to give it back to you. We’re going to give you free stuff, free healthcare, free education,'” Cruz said. “But you know what, it’s going to be Bernie and Maria deciding what you get. Tim and I have a simpler view. You keep your money, you get to decide if you want to invest in your decision.”

Is Ted Cruz correct about this point? Yes.

In 2012, John Stossel wrote this in Forbes:

If the IRS grabbed 100 percent of income over $1 million, the take would be just $616 billion.

In 2011, the Tax Foundation explained that even if you taxed ALL THE INCOME from all the people who make $200,000 or more, you would only raise $1.53 trillion dollars:

So taking half of the yearly income from every person making between one and ten million dollars would only decrease the nation’s debt by 1%. Even taking every last penny from every individual making more than $10 million per year would only reduce the nation’s deficit by 12 percent and the debt by 2 percent. There’s simply not enough wealth in the community of the rich to erase this country’s problems by waving some magic tax wand.

Finally, to put everything in perspective, think about what would need to be done to erase the federal deficit this year: After everyone making more than $200,000/year has paid taxes, the IRS would need to take every single penny of disposable income they have left. Such an act would raise approximately $1.53 trillion. It may be economically ruinous, but at least this proposal would actually solve the problem.

That’s much less than the $10 trillion that Obama added to the debt in his 8 years in office. And much much less than the current national debt which is over $20 trillion. Taxing the rich isn’t enough to pay for our current spending – we have to cut spending. 

Tax cuts are designed to spur economic growth by putting money into the hands of job-creating entrepreneurs. It’s the entrepreneurs who make inventions like smartphones and online marketplaces and streaming online media which make us all more productive. Competition between entrepreneurs drives quality up, and prices down. That’s why we give tax cuts to entrepreneurs – people and businesses who create economic growth by innovating. Giving taxpayer money to the Department of Motor Vehicles generates ZERO economic growth. Giving money to innovators and job creators is what gets us the new inventions and services that grow the economy. 

As Ted Cruz noted in the debate, we do indeed see increased economic growth and higher tax revenues when we have cut taxes in the past, e.g. – under Ronald Reagan. Not the mention the millions of jobs that are created by putting money back in the hands of entrepreneurs.
According to the radically-leftist communist NPR, Bernie Sanders’ most recent tax proposals would add $18 trillion to the debt over 10 years. That’s $1.8 trillion PER YEAR – much more than the $1.53 trillion you get from taxing the rich. So again, even if we take every penny made by those who earn $200,000 or more per year, we aren’t going to be able to pay for socialism. And those people aren’t going to just keep working if you take everything they earn anyway. They’d either stop working or just leave the country – just like the rich left France when they impose a top tax rate of 75%. This is how the world really works, OK. People don’t work for nothing. They probably wouldn’t even work if the government took half of what they earned. I certainly would not.

Back to the debate…

Here is a clip of Ted Cruz explaining how there isn’t enough money to pay for the Democrat spending platform even if you take every penny earned by the top earners:

Here is my favorite clip of Tim Scottt:

I like this clip of CNN cutting off Ted Cruz when he is presenting evidence, too:

The full video of the CNN debate is here:

And here is the full transcript.

5 thoughts on “Ted Cruz in CNN debate: taxing the rich 100% isn’t enough to pay for socialism”

  1. It was Margaret Thatcher who said, “The problem with Socialism is eventually you run out of other peoples’ money.”

    It was Bernie’s followers who said, “Socialism has never worked ever…but don’t worry…it will work this time.”

    Like

  2. Even in USSR productivity declined on state farms. Ones where there was some kind of production bonus did better.

    People need an incentive. Because of you are payed the same whether or not you care about your job it doesn’t make the lazy workers willing to work

    Liked by 2 people

  3. “A liberal (socialist) is someone who feels a great debt to society. A debt he proposes paying with your money.”

    G. Gordon Liddy

    Like

    1. Oh yes, and there’s this:

      “There are only two places where socialism will work: in Heaven, where they don’t need it, and in Hell, where they have it already.”

      Unknown preacher

      Like

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