It was a case of better late than never. A case of a truly flat tax plan. A pancake without the needed yeast or eggs, but with plenty of flavor. At best, Gov. Rick Perry’s economic plan is certainly made of basically more of the same of what’s in place right now.
Here’s a thought. Is it possible to tweak failure and find success? No. You can’t tweak failure.
What’s 20% compared to 39, or 9%? Iceland’s corporate tax rate is 15%. Ireland is 12.5%. There are still many country who would undercut Perry’s flat tax plan. Presidential candidate Herman Cain’s 9% places the United States in the world leadership category. Perry’s plan keeps the country in the middle of the pack, which isn’t as good as one would think.
Perry’s overall plan brings home some bacon, but the country is in desperate need of the whole hog. The country needs something, other than what out there now.
Under Perry’s plan, there’s still a cut off at or below the poverty line, which will, like Cain’s revised plan, continue entitlements, breaks and class warfare.
Deductions are fine and may serve as incentives to spur growth, but really, when all things considered, factored in and out, will it balance the budget in the end, or generate enough revenue to cover the entitlements, which is a major problem facing the country right now.
Corporate tax rate at 20% is good, but there’s a smaller rate for smaller businesses. There’s also an offshore profits rate of 5.25%. Why is there a difference between offshore and in-country profits? When combined, it really shouldn’t matter. A corporation generates profits on a whole. The flat tax rate of 20% should be enough.
Perry wants to repeal the Dobbs-Frank act, which is where the bacon comes into play. He also calls for repealing Obama-care, but that won’t be a down hill coasting scenario. There will be many who willing to fight that strategy because of ‘likes’ in the bill.
Finally, former President Bush tried and failed at privatizing Social Security. Perry is no Bush and as such, there’s a suspicion that he knows most of what he’s promoting will remain only bacon.
The country can’t afford a diet of bacon only, they want the whole hog and if Perry is sincere about guiding the country back to prominence, then he would have offered the whole hog in his economic plan.