Tags:

US Republican Perry Places Hopes on Flat Tax Proposal

Tuesday, 25 Oct 2011 11:36 AM

 

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink

* New poll underscores Perry's challenge

* His answer to Herman Cain's 9-9-9 plan

* Vows to balance the federal budget by 2020

By Steve Holland

GRAY COURT, S.C. (Reuters) - Republican Rick Perry proposed a broad economic plan Tuesday centered on letting Americans pay a flat 20 percent income tax rate that he hopes will reinvigorate his fading presidential campaign.

Perry's challenge in regaining the attention of influential conservative voters in the race to decide the Republican presidential nominee in 2012 was underscored by a new CBS/New York Times poll.

It said Perry stands at 6 percent, down from 12 percent earlier this month, lagging four other contenders led by businessman Herman Cain with 25 percent support and former Massachusetts Governor Mitt Romney at 21 percent.

Perry's flat tax proposal, which he said would allow Americans to file their taxes on a postcard, is his answer to Cain's simple 9-9-9 plan and distinguishes himself from Romney, who has said a flat tax would benefit the wealthy.

The Texas governor was laying out his "cut, balance and grow" plan Tuesday in a speech at a South Carolina plastics factory, where conservative voters are dominant and a state Perry would need to win for any chance at the nomination.

Perry gave a preview of his plan in a Wall Street Journal opinion article. The aim is to generate the economic growth to create jobs and reduce America's 9.1 percent unemployment rate. That is the key issue in the 2012 campaign and the reason why Democratic President Barack Obama is considered beatable.

Perry would give Americans a choice: pay a 20 percent flat tax or keep their current rate. To blunt criticism that a flat tax would cut taxes on the wealthy and increase them on the middle-class, he offered some sweeteners.

His proposal would preserve popular tax deductions for home mortgage interest, charitable donations and state and local tax exemptions for families earning less than $500,000 a year.

Perry is proposing the plan after consultations with Steve Forbes, the Republican who offered a flat tax plan in 1996 when he ran a losing race for the party's presidential nomination. Forbes endorsed Perry on Monday.

"TAX HOLIDAY"

Perry would lower the corporate tax rate to 20 percent from from 35 percent. He would give corporations that have parked $1.4 trillion in profits overseas hoping for tax reform at home the opportunity to pay a discounted tax rate of 5.25 percent temporarily to encourage swift repatriation of the money.

Companies have been lobbying Congress hard for legislation to create a repatriation "tax holiday." Its fate may have been hurt by recent studies finding that an earlier tax holiday failed to create new U.S. jobs, as had been promised.

Perry said he would move the United States to a "'territorial tax system" -- as in Hong Kong and France, for example -- that only taxes in-country income."'

He said he would 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."

To help older Americans, he would eliminate a tax on Social Security retirement benefits and help those who see their benefits taxed if they continue to work and earn income in addition to Social Security earnings.

Perry said he would also establish a goal of balancing the federal budget by 2020 but admitted it would be hard given the tax cuts he says are needed to re-energize economic growth.

© 2014 Thomson/Reuters. All rights reserved.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Peter King, Press Corps Irked Over White House Boston Observance

Tuesday, 15 Apr 2014 22:16 PM

The White House press corps was unhappy that it was not allowed access to a moment of silence for Boston Marathon victim . . .

Arizona State Rep: 'Can't Recognize My Country' in Rancher Dispute

Tuesday, 15 Apr 2014 18:47 PM

Nevada rancher Cliven Bundy may have been partly to blame for his standoff with federal authorities, but the government' . . .

Bill Allows Snap Inspections of Arizona Abortion Clinics

Tuesday, 15 Apr 2014 20:58 PM

Arizona Governor Jan Brewer on Tuesday signed into a law a bill allowing state health authorities to conduct surprise in . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved