After a difficult month which saw him plummet in most national polls, Governor Rick Perry, today launched his much anticipated Flat Tax plan. Making the announcement, Perry said, “The goal of my ‘Cut, Balance and Grow’ plan is to unleash job creation, address the current economic crisis, while at the same time generating a stable source of revenue to address our record deficit and put our fiscal house in order.”
“The flat tax will unleash growth but growth’s not enough,” Perry said. “We must put a stop to this entitlement culture that risks the financial solvency of this country for future generations. I mean the red flags are alarming.”
Perry called for corporate tax reform, including a one-time reduced tax rate of 5.25% for businesses that bring their profits that are parked overseas back to the U.S.
The U.S. Chamber of Commerce estimates this one-time tax reduction would bring more than $1 trillion in capital back to the U.S. create up to 2.9 million jobs, and increase economic output by $360 billion,” he said.
“In other words, it’s the kind of economic stimulus President Obama could have achieved if he wasn’t hell-bent on passing big government schemes that have failed American workers,” he said.
Perry’s plan may seem very attractive and indeed, the most attractive aspect of the plan is that it gives most American’s a “Choice.” It doesn’t stipulate you must do X, it says to ordinary American’s you have these two options, A or B.
As we saw recently with Herman Cain’s plan, people like simplicity however, Governor Perry is going to come under intense scrutiny over the next week from the media regarding his plans. I welcome the plan because it is a departure from previous elections and like Herman Cain and Newt Gingrich, it is bold in wanting to reform the unnecessary tax code which, most American’s having mountains of paperwork to work through annually to get their tax returns completed.
The one big problem I see with Governor Perry’s plan ironically, is the very person who has been credited with lending Perry a lot of support in establishing it, Steve Forbes. Inside the first hour, I witnessed Forbes on a major media outlet supporting the plan.
I admire Steve Forbes and in fact, it was his innovative thinking back in the 1996 campaign that many credit as the root of today’s Perry plan. The harsh fact is this however, Perry needs to be able to convince American on his own and sell them the plan on his own. Herman Cain has been doing it with his 9-9-9 plan, former speaker Gingrich with his “New Contract for America,” and even President Obama has been touring the country trying to sell his jobs bill.
Perry needs to show American’s on a national stage that he can demonstrate the leadership qualities and convince them about the direction he wants to take the country. In the $17 million dollars he raised in the last quarter, $10 million of that came from within Texas, he’ll need extend his appeal beyond the Lone Star State to prove a credible and serious challenger to President Obama nationally.
While I like the “Choice” feature of Governor Perry’s plan, the next week is crucial. He needs to stand independent of Steve Forbes and sell his own ‘Cut, Balance and Grow’ plan and hopefully, Perry’s communication’s team, will have already set it up for Steve Forbes, to limit his air time talking about Perry’s plan.
My experience about business dealing in America tells me one thing; American’s admire creativity and innovation. If Perry stumbles during interviews or gets labelled as Steve Forbes 2.0 his chances of resurrecting his campaign nationally will all but disappear. I wish the Governor well however.
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