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GOP Presidential Candidate Rick Perry
I honestly didn't think anyone could — or would — come up with a worse plan for U.S. tax reform than Herman Cain did with his 999 proposal. But Texas Gov. Rick Perry just released his "Cut, Balance and Grow" plan, which is also being referred to as the "20-20" plan, echoing Cain's 999. The difference is that Perry replaces Cain's 9 percent flat income and corporate taxes with a 20 percent flat tax for both. But there's more! And just in time for Halloween, it's...terrifying!
I'd like to call it stupid, but ridiculously stupid would be better.
The plan has four key pieces:
- Americans will be able to choose between the current tax system and the 20-percent flat tax.
- Corporations will see their tax rate cut from an average of 35 percent under the current system to a flat 20 percent with Perry's plan.
- Federal spending would be capped at 18 percent of GDP, which Perry argues is the average since 1960. This will, he insists, balance the budget by 2020.
- Workers would be able to opt out of Social Security.