By MARK WOODSON
Senator Ted Cruz’s victory in Iowa is just the beginning, according to David C. Lewis, RFC, of Monegenix. He won the Iowa Republican caucus on Monday night, beating down team Trump and rebuffing Rubio. Cruz is a candidate that defies all odds.
With 99% of precincts in, Cruz has managed to lead with 28% of the vote compared to 24% for Trump. Rubio’s 23% puts him solidly in third place.
Winning in Iowa is a good start. And, if he makes it all the way to the White House, businesses everywhere get a hidden benefit: tax reform.
By now, most people know that Cruz’s audacious tax plan eliminates the IRS. What most people don’t realize is the implications of such a move. Not only will Cruz institute a flat tax, he will have systematically eliminated the benefit of over 100 tax patents – patents filed by attorneys on sections of the IRS code, which currently prevent small businesses from taking full advantage of all of the deductions and tax strategies they’re entitled to under the law.
Most of these strategies involve trusts and complex financial strategies. But, other tax patents have been filed on simple and practical tax reduction strategies that could benefit business owners.
Those patents would be a moot point. But, that’s not all.
According to David C. Lewis, “Eliminating the IRS opens the floodgates. Most people don’t know that the IRS code places restrictions on a variety of financial products, like life insurance and annuities, real estate, and other investments.”
By eliminating the IRS, presumably the Internal Revenue Code would also be abolished.
“We would see a renaissance in the financial industry. Perhaps even a return to guaranteed savings contracts so that Americans would never have to worry about their retirement savings ever again.”
Prior to 1988, Endowment contracts were a popular way for people to save money. Life insurance companies would guarantee a set amount of money for some future date. Investors could buy into these policies and be assured that their savings would be there for them in the future. But after the Technical Corrections Act of 1988, these contracts went away because the IRS eliminated the tax benefit and insurers no longer had a motivation to sell them. Once the IRS is gone, all bets are off. And, business owners stand to benefit the most.
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