Rick Perry's Flat Tax
Posted by Leisa Amorosa on Wednesday, October 26, 2011 Under: Christian News
Texas is a prosperous state and a good example of what Perry proposes for the nation.
The Washington Post (excerpts): Perry's economic plan would slash taxes and federal spending
Gray Court, SC - Texas Governor and Republican presidential candidate Rick Perry has released an economic plan full of long-held conservative goals, including personal accounts for Social Security, an optional flat tax, major spending cuts and a series of tax cuts. The plan would dramatically reduce taxes, particularly on wealthy Americans and corporations. It would reduce the corporate tax rate from 35 to 20 percent, eliminate taxes on individuals and many capital gains and essentially cap individual tax rates at 20 percent. Perry argues these tax cuts will spur economic growth by creating a more favorable environment for wealthy individuals and corporations to start or expand their businesses; but without significant spending reductions, the tax cuts could drastically increase the federal budget deficit.
"Taxes will be cut across all income groups in America and the net benefit will be more money in American's pockets, with greater investment in the private economy," Perry said. The "Cut, Balance and Grow" plan, which Perry first unveiled Tuesday in an op-ed in the Wall Street Journal, puts Perry firmly to the political right of former Massachusetts Governor Mitt Romney in terms of economic policy. Perry is clearly looking to woo tea party conservatives who have been reluctant to back Romney. In almost every way, he presents policies that are slightly more conservative than those of the former Massachusetts governor. Romney has called for capping federal government spending at 20 percent of GDP. For example, the Texas governor proposes capping at 18 percent. (This year, under President Obama, spending is at 24 percent of GDP). Romney has proposed raising the retirement age to reform Social Security. Perry adopts an idea even more beloved by conservatives and hated by liberals: allowing young people to put their money into private savings accounts outside the traditional retirement system. Romney would cut corporate taxes to 25 percent; Perry to 20. Although, Romney has said one of his goals is a "flatter" American tax code; under Perry's plan, American's could either choose to pay taxes under the current system, or pay a 20 percent national flat tax.
Conservative activists have long called for the adoption of a flat tax. Overall, Perry's vision would call for much larger tax cuts and spending cuts than Romney's proposals. It creates an even larger divide between him and Obama. If enacted, Perry's plan would probably result in huge cuts to domestic spending programs and major tax cuts.
Commentary: The article above doesn't focus enough on the enormous positive economic impact Rick Perry's proposals would have on the US. Yes, the major tax cuts would give the wealthy a break, but the much greater benefit would be that it would not only give lower wage earners a break as well, but it would help keep more jobs in the US, instead of the steady steam of corporations moving out of the US to avoid heavy taxation. Earlier in the article, the writer focuses on a potential increase in the deficit, if spending isn't cut; but Perry's economic proposals do include spending cuts to outweigh that possibility. Rick Perry not only presents conservative spending and tax cuts, but most importantly, he is a man who openly fears God, and there can't be enough emphasis placed on that attribute in Rick Perry. God bless him! The Word of God says, "Fear the Lord, saints of God, because there is no want (lack of anything) for those who fear Him" Psalm 34:9. Texas is one of the most prosperous states in the nation; is there any wonder?
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