In a bid to jumpstart his stalled presidential campaign, Texas Gov. Ricky Perry unveiled a “bold” tax plan on Tuesday, promising that it would give the economy a much-needed lift. Perry, speaking at a South Carolina plastics factory, proposed a flat, 20 percent tax to dramatically simplify the tax code, allowing people to fill out their returns on a postcard. To prevent the plan from raising taxes on poor and middle-class Americans — most of whom pay less than 20 percent in income taxes — Perry said anyone now paying a lower rate could opt to stick with the current system. Still, critics derided Perry’s plan as “regressive.” Would a flat tax really be good for America?
Two possible reactions:
Absolutely not — this is a sop to the rich: All Perry is doing is slashing income and investment taxes for the rich. And “the genius” of the plan is that it also frees us from “them tax-time paperwork pains of asses”, (wow, a postcard!!! Yeeeee Hawwwww), while the rest of us are stuck with the complicated old system. Of course, working class taxes won’t change, and the poor will actually pay more if the Earned Income Tax Credit is repealed. It’s hard to believe that even among Republican primary voters, the largest group being the group calling for lower taxes, that Perry’s “bold” plan would convince them that their choices are 1) the same as before Perry, or 2) higher taxes! (Wait, whuuut??? How’s that agin young feller??? Nawww, not even to get rid of Obahmmer!!) But I guess I’ve seen stranger things during this past summer of Republican discontent, (Herman Cain’s, “Smoking Man” comes to mind for sure).
Hmmm, so Ricky Perry’s ‘flat tax’ is not so flat after all.
Hey! Perry is onto something here: This could be a “game changer” for Perry’s campaign, and for taxpayers! Me likey!!! Ricky Perry is pushing exemptions for a family of four to $50,000, which should keep “Democrats from demagoguing it as an attack on the middle class.” And slashing the corporate tax rate to 20 percent, as Perry proposes, would keep Congress from stifling business. The only problem is letting individuals opt out — we have enough problems with one system, let alone two. (And I’ll let you guess which of the candidates the normally Republican-oriented American Institute of Certified Public Accountants, H&R Block, the makers of Turbo-Tax, etc., etc., etc., will be supporting).
Love it or hate it, Perry’s plan won’t pass: Many conservatives think Perry’s recycling of the flat tax is cool, but fiscal critics already have their red pens out, and they don’t like what they see. The non-partisan Tax Policy Center said a similar plan proposed by John McCain in 2008 would have added $7 trillion to the deficit over a decade.
Regardless, Perry’s plan may already have served its true purpose. By making his rival Mitt Romney look timid by comparison, he’s distanced himself from Mr. Romney and if you are seeking Tea party supporters, then it can’t be all bad.