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As we know according to Romney, “It has been a rough couple of weeks for Perry." So, what is Perry going to do to regain his spot in the race? Finally releasing his tax plan is a start! I hope it's good Perry, for all of our sakes.
Supposedly we are looking at a plan so easy even a cave man could do it…on an index card…
Perry as of October 25th released his tax plan. In Perry’s tax plan, there will now be a 20% Cooperate tax rate instead of 35%, 20% Federal flat income tax, while doing away with death tax, taxes on social security, and long term capital gains taxes. This plan preserves mortgage interests, exempting families that earn $500,000 annually from charitable local and state tax. Furthermore, it will boost the standard deduction to $12,500 for dependents and individuals.
What the hell does all of this mean!?
It will definitely reduce taxes, particularly on the wealthy. This is a very good thing. Reducing taxes will allow room and economical stability for expansion. And the expansion will mainly come from the upper class. However it will allow entrepreneurial risk taking for smaller businesses, not just large businesses. Stability creates confidence, and according to pretty much every candidate that has every run for president, we always hear, “We need to put confidence back in America”. Duh…
We know the wealthy will benefit from this plan but what about lower class Americans? As stated above, there will be a 20% national flat tax. However, there is an Opt-out provision where you may choose to keep your tax rate that you have now.
I forecast a few problems with this new plan… Taxes are 50% of the battle.
Perry has high hopes of bringing our economy back down to something controllable by the year 2020, but what will this plan do to our deficit budget in the meantime? With all the tax cuts, aren’t we worried about our Federal deficit budget increasing? It’s very probable that it will if there are still no specific spending reductions put into this plan.
It seems to me like the flat tax of 20% is more than welcoming. It also seems the Opt-out provision is welcoming, but what about the Americans who are paying no taxes at all? Do they just continue to pay no taxes AT ALL! Giving the choice to Americans is nice (after all it is what we want), but is it necessarily the best idea? Sometimes it may be better to un-complicate things by taking out “wiggle room” so to speak. This will allow much less room for error or potential problems. Basically if you go to your college class the first day and the professor says, “Hi, uhmm, I hope you show up to my lectures but attendance isn’t counted towards your grade,” what the hell would you do? The choice your professor gave you is damn fabulous, but not the best. You’re most likely going to slip up on your homework (your taxes) and you won’t learn shit.
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