Rick Perry just unveiled details of his big plan "Cut, Balance, and Grow" plan in a new WSJ editorial. Here are the highlights:
- People can choose between 20% flat rate or their current rate
- Flat tax of 20% preserves mortgage interest/charitable/state and local exemptions for families earning less than $500,000
- Increases standard deduction to $12,500 for individuals and dependents
- Abolishes "death tax"
- Lowers corporate rate to 20%
- Temporarily lowers it to 5.25% for repatriation
- Transition to territorial tax system — only taxes in-country income
- Eliminates tax on Social Security benefits
- Eliminates tax on dividends and long-term capital gains
- Balances budget by 2020
- Caps fed spending at 18% of GDP
- Freezes hiring and salaries in civilian fed gov jobs until budget is balanced
- Younger workers can opt out of Social Security
What do you think of his proposal?