Perry’s economic plan would slash taxes, federal spending on programs

[alp227]

Source: Wash. Post

GRAY COURT, S.C.-Texas governor and Republican presidential candidate Rick Perry has released an economic plan full of long-held conservative goals, including personal accounts for Social Security, an optional flat tax, major spending cuts and a series of tax cuts.

The plan would dramatically reduce taxes, particularly on wealthy Americans and corporations. It would reduce the corporate tax rate from 35 to 20 percent, eliminate taxes on dividends and many capital gains and essentially cap individual tax rates at 20 percent.

Perry argues these tax cuts will spur economic growth by creating a more favorable environment for wealthy individuals and corporations to start or expand their businesses. But without significant spending reductions, the tax cuts could drastically increase the federal budget deficit.

(...)

Romney has called for capping federal government spending at 20 percent of GDP, for example; the Texas governor proposes capping at 18 percent. (This year, under President Obama, spending is at 24 percent of GDP).

Read more: http://www.washingtonpost.com/politics/perry-calls-for-major-spending-and-tax-cuts/2011/10/25/gIQAu7OUEM_singlePage.html

[Swede Atlanta]

1. Another give away to the wealthiest among us.......

This isn't far off from Insane Cain's 9-9-9 plan which amounts to an 18% tax on individuals and a 9% tax on income for corporations plus 9% on whatever they spend on goods and services.

But it will end up with the same result...huge tax cuts for the wealthiest Americans and an increase for many other Americans.

In both cases because payments to the federal government will decrease, massive spending cuts will be needed and we know they won't come from corporate welfare or the defense budget. It will be to those programs designed to help the least among us and programs that are intended to help educate and protect us from the FDA to the EPIA to Highway Safety. As a result, states and local municipalities will have to increase taxes significantly. With housing values unlikely to recover anytime soon, property taxes aren't a likely target for such increase. It will have to be in the form of increased state income and sales taxes.

Plus trickle down hasn't worked for 30 years so why should it start working now?