Texas Governor Rick Perry will unveil his 20% flat tax plan today at both a speech and a press conference. While all of the details are not yet known, some have been leaked. The 20% flat tax will be an option, that each taxpayer may choose. There will be a $12,500 deductible for each household. The tax reform measure will also call for a balanced budget amendment to the Constitution. Also, a requirement that the federal budget does not exceed 18% of the nation′s GDP. The federal death tax on estates will also be eliminated. Rick Perry got help from Steve Forbes in crafting this flat tax plan. Forbes, a former Republican presidential candidate himself, has been a long time advocate for a flat tax to replace our current tax code. The plan is in response to the Herman Cain 9-9-9 tax plan, which has since been modified to the 9-0-9 tax, eliminating an unpopular national sales tax proposal.
Initial reaction by some economists raise concerns over either tax plan being revenue neutral. Others question whether such a plan really needs to be neutral, wanting to see major reductions in the size and cost of the federal government. Congressman Ron Paul has recently proposed trimming $1 Trillion dollars from the federal budget by eliminating five entire departments. Analysts from Bank of America and Merrill Lynch raised a warning that other credit rating agencies may downgrade America′s Triple-A bond rating as early as next month should the Congressional Super-Committee fail to deliver a genuine, long-term plan to reduce government spending and eliminate budget deficits.
Of course, much of the Media is ignoring the 20% flat tax proposal by Texas Governor Rick Perry. On MSNBC this morning, Joe Scarborough spent nearly all of the first 20 minutes berating Perry after a recent magazine interview touched on the subject of the birth certificate of Barack Obama. Perry mentioned that while he believes Obama is a US citizen, he remarked that Donald Trump, with whom he had dinner, still believes the Obama birth certificate is a phony. The Media is stretching the point in an attempt to paint Perry as a ′Birther′, since they know that Rick Perry is the only Conservative GOP candidate with the record and the cash to effectively challenge Obama next fall. Rick Perry will speak today in South Carolina and unveil his 20% flat tax plan which Steve Forbes helped put together for him.