Rick Perry comes up with a winner in just unveiled tax plan
Folks, I really hope he starts gaining his feet again. The longer he stays in the race, the better he is going to get. The plans that Perry is putting out are solid and simple to understand. These plans will not be difficult to articulate and sell to the American public. Also, they are simple enough that he will be able to debate effectively without having to cram in debate preparation.
- 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….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.
- 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 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.
Simple and fantastic. The article is worth the read. It doesn’t pander, broadens the tax base, and gets Washington out of the way. Of course the Democrats will say that this is going to increase the burden on the poor, blah, blah, blah. There was a devastating and subtle point that Perry makes it very hard for the Democrats to use this age old playing card in case you missed it: The plan starts with giving Americans a choice between a new, flat tax rate of 20% or their current income tax rate. The fact is that current Democratic policies have made it impossible for the poor to be employed. The plan encourages and gives incentive to people to work hard and creates a wonderful environment for employers to hire.
In closing, I have made up my mind. I’m going to stick with Rick Perry. It simply is because of the fact that he is and has been the most consistent in his core convictions though he has had his stumbles. The main thing is that there is never a doubt or question in my mind where he stands. I can’t say the same for Herman Cain. I just hope, and will pray for him, that he starts gaining his feet on the debate stage.