» Insights: The Perry Economic Plan: Getting on Board the Flat Tax Train Decision Economics

Insights: The Perry Economic Plan: Getting on Board the Flat Tax Train

Posted October 26, 2011 by CLeahey

[private]

  • The Perry Economic plan includes a 20% flat rate on personal and corporate income, an 18% of GDP cap on spending, and significant regulatory and entitlement reform.
  • The Perry plan is somewhere between Romney’s cuts to a 25% tax rate and Cain’s to 9%.
  • The flat tax/lower tax rate train is gathering traction.  Obama will probably get on board sometime early next year and call for reductions along the lines of Romney, with a new top 25% top tax rate paid for by loophole closings.
  • So 2013 may be a replay of 1986 when tax reform cut the top marginal tax rate to 28%.  But it did not stay  low for long.

perry_economic_plan_flat_tax_102611[/private]