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Rick Perry unveils tax plan

by Adam Russett on October 25, 2011

Sliding in the polls and struggling at debates, Texas Governor Rick Perry unveiled his tax plan on Tuesday to help boost his fading presidential chances. Perry unveiled his proposal in The Wall Street Journal, warning that the United States will go the way of Europe if change isn't enacted quickly.

Dubbed the Cut, Balance and Grow plan, Perry suggests getting rid of the current tax code and replacing it with something much more simple. In particular, he wants to give Americans the choice between a flat 20 percent tax rate or their current income tax rate.

As for corporations, Perry plans to lower their tax rate from its current level of 35 percent to 20 percent, with a temporary lowering to 5.25 percent to lure back businesses who have placed their money overseas. He claims that by simplifying the corporate tax code it will make it more difficult for businesses to find loopholes.

"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," Perry wrote in the Journal. "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."

The early returns from Perry's plan have been mixed but met with less criticism than sudden front-runner Herman Cain's 9-9-9 plan, with Forbes magazine giving the plan somewhere between a B+ and A-. He is expected to formally roll out the plan Tuesday afternoon in South Carolina and will also meet with high ranking GOP members including Senator Jim DeMint.

Though it represents his first concrete jobs proposal, it may be too little too late for the Texas Republican, who has fallen behind both Mitt Romney and Cain in most polls.

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