Rick Perry Previews His Cut, Balance and Grow Economic Plan


He’s not good in debates, but I’m still pushing Rick Perry for the Presidency – and now, again on jobs and the economy.

Via AoSHQ, excerpts from The Wall Street Journal:

My Tax and Spending Reform Plan
Individuals will have the option of paying a 20% flat-rate income tax and I’ll cap spending at 18% of GDP.

By RICK PERRY

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. [Scott: See How To Add $1 Trillion To The Economy With The Stroke of a Pen]

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. [Scott: see High Tax Rates Makes People Avoid Taxable Economic Activities, Thereby Reducing Govt Income for more.]

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.

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.

Mr. Perry, a Republican, is the governor of Texas and a candidate for president.

UPDATE 1: The actual plan announcement.

UPDATE 2: The expert opinion is in, and it is looking good:

Using static analysis, the Perry Plan would raise $23.8 trillion from 2014-2020, or $4.7 trillion less than the CBO baseline of $28.5 trillion over that span. Using dynamic analysis that assumes growth effects from the redesigned tax code, the Perry Plan would raise $26.8 trillion, or $1.7 trillion less than CBO baseline.

Under Perry’s plan, the economy would be $3.5 trillion bigger than under the CBO’s estimate of current growth.


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3 Responses to “Rick Perry Previews His Cut, Balance and Grow Economic Plan”

  1. Sherry Says:

    I like the flat tax system. Well, I like Gov. Perry’s thinking on taxes. I was for Cain but am seriously looking at Perry now since Cain’s abortion debaucle. How a candidate treats the unborn life means alot to me.

    I have a question. The flat tax will be 20% so is there a way to keep from going up higher?

  2. Dudewtf Says:

    if you’re “pushing” rick perry for presidency, then you’re automatically the biggest moron out of Malaysia, and everything you say beyond this will always pale in comparison to your endorsement of rick perry and is suspect at best. Anyone who supports the GOP is either a maniacal fascist or a moronic fatass, Please dont get me wrong, i hate liberals but will settle for them being the lesser of two evils. Rick perry has sacrificed 200+ lives since he was governor of texas to please satan. And here is a nother moron above me who is fussing on how the candidate treats unborned child is important.

  3. Scott Thong Says:

    So let me get this straight, Dudewtf…

    A) A grown man rapes and murders a string of people and is executed after a lengthy trial and multiple appeals.

    B) An innocent unborn child is aborted with no say, no trial, just the decision of its mother.

    And you think A) is less justified, humane and moral than B)?

    And Rick Perry doing A) 200 times over his entire 11+ years Governorship is worse than Americans doing B) 100,000 every month?

    Did I get that right?

    But hey, who am I to bust libs brains on that ‘math’ stuff they hate to think about?

    Anyway, whatever maniacs or morons they may be, ANY of the GOP candidates would have to try really hard to do worse on the economy and jobs (the biggest issue to voters right now) than Teh Obamessiah.

    But hey, who am I to bust libs brains on that ‘math’ stuff they hate to think about?

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