Rick Perry is proposing to set a single 20 per cent tax rate for all US businesses and individuals in a high risk attempt by the Texas governor running for the White House to present a staunchly conservative fiscal policy prescription for the ailing US economy.
President Perry? ---------->
Mr Perry, who has been struggling to gain momentum in the race for the Republican nomination to challenge Barack Obama in the 2012 presidential campaign – would allow Americans to choose between paying their current income tax rate and the new 20 per cent flat tax rate, the Texas governor wrote in an opinion piece for the Wall Street Journal on Tuesday.
Other elements of the tax plan include an elimination of inheritance tax – a longstanding objective of many conservative politicians and economists – and the end of taxes on investments like capital gains and dividends. The payroll tax on employers and employees – which funds the Social Security government pension scheme – would also be scrapped under Mr Perry’s proposal.
While the plan may attract praise for its simplicity, and from supporters arguing it could unleash a new wave of entrepreneurial spirit across the stricken US economy, it is bound to attract severe criticism on several fronts. As many flat tax plans do – this proposal is likely to be attacked for reducing the tax burden on the top earners, while increasing it on low-income and middle-class families. Read the entire article ;