published Wednesday, October 26th, 2011

Gov. Perry's flat tax plan

How would you like to get rid of the federal tax code and replace it with a simpler system?

That would be great! Think of the savings in tax compliance costs alone: The Tax Foundation predicts that within four years, the American people will be spending almost half a trillion dollars in the often nearly impossible attempt to understand and comply with the tax code.

What if a simpler code were adopted that would eliminate the bulk of those costs for many Americans, allowing that money to be used more productively in our economy?

Texas Gov. Rick Perry -- one of the Republicans seeking the GOP nomination to challenge President Barack Obama -- has proposed a flat tax option that he says would "lower and simplify tax rates, cut spending and balance the federal budget, reform entitlements, and grow jobs and economic opportunity."

He would give you the choice between your existing graduated income tax rate and a flat tax of 20 percent.

His proposal would maintain some tax exemptions for families earning less than half a million dollars a year, and it would increase the standard deduction to $12,500 for individuals.

He would also eliminate taxes on Social Security benefits. He would maintain current Social Security benefits for retirees, but he would give younger workers the option to place their income in private accounts.

Perry also wants a balanced budget amendment to the Constitution, and he seeks to limit federal spending to 18 percent of gross domestic product.

He aims to balance the budget by 2020.

Could his plan work? That's hard to know at this point.

But we should find out much sooner whether it generates enough public interest to propel Perry back into the upper tier of GOP candidates.

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EaTn said...

Think Perry has your best interest at heart? The top 1% have more than doubled their income relative to the rest the past 30 years, and when asked about this difference Perry quipped "I don't care about that" (interview with NY Times).

October 26, 2011 at 4:57 a.m.
joneses said...

Why is it the dummycrats always say they want to raise taxes on the wealthy but never do? For two years the dummycrat liars had the House, Senate and the White House and never voted to raise taxes on these wealthy people they demonize. Actually this fool we have as a presidnet extended the Bush tax cuts that benefited the wealthy. I am not for raising taxes on anyone except the 50% of the looters in this country that do not pay any taxes. I do not want the wealthy's tax rate to be raised, I want mine to be lowered to thiers. You are a fool if you believe Obama is going to raise taxes on the people that are paying $35,000.00 each to have dinner with him this week. Obama is the most devisive president ever and his agenda is class warfare.

October 26, 2011 at 6:28 a.m.
conservative said...

Almost every state has a flat tax already in place. The obvious reason is because it is fair. Even lieberals recognize this fact! It is the sales tax.

October 26, 2011 at 7:29 a.m.
EaTn said...

After the 2008 election the democrats had a solid house majority and 57 majority in the senate, which still left them semi-powerless since 60 votes in the senate are required to prevent a stalemate filibuster. Obama did not have a free reign during that time, but I do agree he could have done more to kill the Bush tax breaks for the wealthy. This, along with a major giveaway compromise in the health care law are his biggest mistakes.

October 26, 2011 at 8:30 a.m.
conservative said...

Hmm, lieberals cry for higher taxes on the "rich" because it is "fair". Given the choice between paying a flat 20 percent tax or the existing graduated income tax, does anyone believe lieberals will opt to pay the greater tax ?

October 26, 2011 at 8:59 a.m.
hambone said...

Perry called Romney a fat cat. Romney inherited his, Perry made his in politics.

Ever see a politician that could be called a skinny cat?

October 26, 2011 at 9:49 a.m.
librul said...

These Rethuglican tax scams are unbelievable because they shift the overall tax burden onto elderly and low income people who are barely making it already. The fine print always includes giveaways to corporations even if deductions are included for working people and I don't see any mention of closing loopholes that give the pervresely rich the ability to avoid paying their fair share.

October 26, 2011 at 2:06 p.m.
LibDem said...

Instead of paying someone to prepare your taxes once, you can pay someone to calculate your taxes two ways and pick the best option. I'm sure you'll get a price break for volume. OR you could go online and prepare your own taxes.

October 26, 2011 at 2:25 p.m.
conservative said...

One advantage of the Perry plan is the postcard idea first proposed by Steve Forbes several years ago. This excerpt appears in today's IBD : Each individual taxpayer will have a choice: you can continue to pay taxes, as well as accountants and lawyers under the current system, or, you can file your taxes on a postcard, with deductions only for interest on a mortgage, charitable giving, and state and local tax payments".

October 26, 2011 at 6:20 p.m.
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