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Tuesday, October 25, 2011

Election 2012 | Rick Perry Unveils Flat Tax Proposal to Shatter Complex Tax System and Give Taxpayers Choice



Texas Gov. and Presidential candidate Rick Perry is unveiling his flat tax proposal, giving choice to taxpayers, putting caps on wild spending, killing the death tax, giving incentives for corporations to bring back investment to the United States and create a balanced budget by 2020.

MY TAX AND SPENDING REFORM PLAN
By Rick Perry, Governor of Texas and candidate for President of the United States


The folks in Washington might not like to hear it, but the plain truth is the U.S. government spends too much. Taxes are too high, too complex, and too riddled with special interest loopholes. And our expensive entitlement system is unsustainable in the long run.
Without significant change quickly, our nation will go the way of some in Europe: mired in debt and unable to pay our bills. President Obama and many in Washington seem unable or unwilling to tackle these issues, either out of fear of alienating the left or because they want Americans to be dependent on big government.

On Tuesday I will announce my "Cut, Balance and Grow" plan to scrap the current tax code, lower and simplify tax rates, cut spending and balance the federal budget, reform entitlements, and grow jobs and economic opportunity.
The plan starts with giving Americans a choice between a new, flat tax rate of 20% or their current income tax rate. The new flat tax preserves mortgage interest, charitable and state and local tax exemptions for families earning less than $500,000 annually, and it increases the standard deduction to $12,500 for individuals and dependents.
This simple 20% flat tax will allow Americans to file their taxes on a postcard, saving up to $483 billion in compliance costs. By eliminating the dozens of carve-outs that make the current code so incomprehensible, we will renew incentives for entrepreneurial risk-taking and investment that creates jobs, inspires Americans to work hard and forms the foundation of a strong economy. My plan also abolishes the death tax once and for all, providing needed certainty to American family farms and small businesses.
My plan restores American competitiveness in the global marketplace and provides strong incentives for U.S.-based employers to build new factories and create thousands of jobs here at home.
First, we will lower the corporate tax rate to 20%—dropping it from the second highest in the developed world to a rate on par with our global competitors. Second, we will encourage the swift repatriation of some of the $1.4 trillion estimated to be parked overseas by temporarily lowering the rate to 5.25%. And third, we will transition to a "territorial tax system"—as seen in Hong Kong and France, for example—that only taxes in-country income.
The mind-boggling complexity of the current tax code helps large corporations with lawyers and accountants devise the best tax-avoidance strategies money can buy. That is why Cut, Balance and Grow also phases out corporate loopholes and special-interest tax breaks to provide a level playing field for employers of all sizes.
To help older Americans, we will eliminate the tax on Social Security benefits, boosting the incomes of 17 million current beneficiaries who see their benefits taxed if they continue to work and earn income in addition to Social Security earnings.
We will eliminate the tax on qualified dividends and long-term capital gains to free up the billions of dollars Americans are sitting on to avoid taxes on the gain.
All of these tax cuts will be meaningless if we do not control federal spending. Last year the government spent $1.3 trillion more than it collected, and total federal debt now approaches $15 trillion. By the end of 2011, the Office of Management and Budget expects the gross amount of federal debt to exceed the size of America's entire economy for the first time in over 65 years.
Under my plan, we will establish a clear goal of balancing the budget by 2020. It will be an extremely difficult task exacerbated by the current economic crisis and our need for significant tax cuts to spur growth. But that growth is what will get us to balance, if we are willing to make the hard decisions of cutting.
We should start moving toward fiscal responsibility by capping federal spending at 18% of our gross domestic product, banning earmarks and future bailouts, and passing a Balanced Budget Amendment to the Constitution. My plan freezes federal civilian hiring and salaries until the budget is balanced. And to fix the regulatory excess of the Obama administration and its predecessors, my plan puts an immediate moratorium on pending federal regulations and provides a full audit of all regulations passed since 2008 to determine their need, impact and effect on job creation.
ObamaCare, Dodd-Frank and Section 404 of Sarbanes-Oxley must be quickly repealed and, if necessary, replaced by market-oriented, common-sense measures.
America must also once and for all face up to entitlement reform. To preserve benefits for current and near-term Social Security beneficiaries, my plan permanently stops politicians from raiding the program's trust fund. Congressional IOUs are no substitute for workers' Social Security payments. We should use the federal Highway Trust Fund as a model for protecting the integrity of a pay-as-you-go system.
Cut, Balance and Grow also gives younger workers the option to own their Social Security contributions through personal retirement accounts that Washington politicians can never raid. Because young workers will own their contributions, they will be free to seek a market rate of return if they choose, and to leave their retirement savings to their dependents when they die.
Fixing America's tax, spending and entitlement cultures will not be easy. But the status quo of byzantine taxes, loose spending and the perpetual delay of entitlement reform is a recipe for disaster.
Cut, Balance and Grow strikes a major blow against the Washington-knows-best mindset. It takes money from spendthrift bureaucrats and returns it to families. It puts fewer job-killing regulations on employers and more restrictions on politicians. It gives more freedom to Americans to control their own destiny. And just as importantly, the Cut, Balance and Grow plan paves the way for the job creation, balanced budgets and fiscal responsibility we need to get America working again.

9 comments:

Anonymous said...

What a nut job.

The voters rejected the Forbes flat tax in 2000.

The Gov is just trying to appeal to the crazies on the fringe right.

Also bringing up the goofy "birther" thing again

It is embarassing to see what idiots are in power.

Anonymous said...

I like the idea. What's specifically wrong with it?

Anonymous said...

I like the idea. What's specifically wrong with it?

Well for one, unlike Cain's plan their is no national sales tax so whores (the non-Kifowit type), drug dealers, and criminal illegal aliens invaders still do nto have to contribute anything. the best part of Cain's plan is the fact you have to pay a tax (part of which is refunded for low income workers). That means if you have unreported income you end up paying something into the system.

Perry is an illegal alien lover and this tax code allows the criminals to keep on hiding.

Anonymous said...

First off, we really have no idea what Cain wants to do, because almost everything he announces, he comes back later and changes. (Oh, I didn't mean what you think I did, Oh, that was a joke, etc.).

As for Perry's "plan" I'm all for reviewing regulations, but some of the ones he specifically cites he wants to get rid of, we need. I will give him credit that he's just wanting to dump regulations that cam in under Obama; the House Republicans want to gut environmental and other protections that have worked very well for over 20 years. Not taxing SS benefits sounds good, as long as you put a cap on that exemption. And as for encouraging money to come back to the US, there was a report on the radio yesterday that a number of corporations are already bringing manufacturing jobs BACK to the U.S., because wages are rising in China.

And yeah, getting back into the birther thing makes Perry look crazy, except I don't think he really believes it. He's just courting the crazy birther vote. It also confirms my prediction: no matter what Obama released, they were never going to change their beliefs. Why let the facts get in the way?

Anonymous said...

What a blatant attempt to pander to both sides of the issue. Letting people choose between a flat tax or the current system won't work! It has to be all one or the other. If he wants a flat tax, then go w/ that. If he wants to just tweak the current system, do that. Sheesh, have the fortitude to decide what you propose, and support it, Rick!

Anonymous said...

Perry's stupid plan takes even more people of the Federal tax rolls. Thus spiking the number who pay nothing in Federal taxes to over 50%. Great plan.

Anonymous said...

Perry's stupid plan takes even more people of the Federal tax rolls. Thus spiking the number who pay nothing in Federal taxes to over 50%. Great plan.

Anonymous said...

The Republican field is basically guaranteeing Obama's re-election. His approval rating could drop to 20%, and he'd STILL be a better choice than any of these. Plus, it would still be a higher approval rating than congress' -- including the Republican majority in the house (for now).

And no, I'm not a democrat.

Anonymous said...

Did you hear that now even Tea Partiers are calling for Bachmann to drop out! Let her stay in. She'll get the same number of votes either way. Zero. Oops, wrong. She'll get 2 votes in Minnesota -- hers and her husband's. Well, hers at least.