He calls it a “flat tax,” but some analysts have noticed a few bumps in Rick Perry’s catchy “20-20” tax plan. Perhaps feeling the heat from recent gains made by a certain GOP presidential contender with his own numerological tax scheme who may or may not hail from Florida, Perry unveiled a simplified strategy Tuesday that comes with an exciting accessory: Perry’s postcard-sized tax form.
The code that Perry is proposing would feature a 20% personal income and corporate tax, the elimination of Social Security and capital gains taxes, and the preservation of popular deductions for mortgage interest and charitable giving. Under the “cut, balance, and grow” plan, tax loopholes for corporations would be phased out while the standard exemption for those earning $500,000 or less would be increased to $12,500.
His economic team believes that those changes, combined with deep spending cuts and entitlement reforms including a gradual increase in the retirement age, will encourage so much growth and save families and corporations so much in compliance costs that the budget could be balanced by 2020.