In 1996 and 2000, businessman Steve Forbes ran for President with his main economic plan being his call for scrapping the Federal Tax code for a simple, flat income tax. Republican Governor Perry of Texas, is proposing another flat tax plan, as he runs for President in 2012.
Steve Forbes has endorsed Governor Perry’s Flat Tax plan. Apparently, Forbes had input into the design of the plan. The new plan lets people choose the old system or a 20% flat tax after generous standard exemptions of $12,500 for individuals and their dependents, as well as deductions for mortgage interest, charitable contributions, and state and local taxes.
When Steve Forbes proposed his plan it was to be a 17% tax rate across the board. A typical family of four would pay no tax on income up to $36,000 per year, and then the 17% rate would be for all income above that.There would be no tax on Social Security. No tax on pensions. No tax on personal savings. It would zero out capital gains taxes.
At the time, Steve Forbes made it clear that his plan was not to be “revenue neutral” as so many candidates try to do with their own plans. He wanted a clear tax cut and reform. A sort of “best of both worlds” plan.
Fast forward to the new Perry plan. It is similar to the original Forbes plan. The option to stay with the old tax code does nothing to help simplify things but it does give people the benefit of choosing the best plan for themselves.
One very important aspect of Perry’s new economic proposal is his cap on Government spending at 18% of GDP. This would be a great step forward to reducing government spending growth.
There is a lot more to the Perry plan, but the real key here besides the spending caps, is the flat tax, that is based on Steve Forbes original plan from his 1996 and 2000 campaigns.
I supported Forbes in both campaigns. The flat tax makes the most sense out of any of the new tax proposals being made. I have long supported a flat tax as the common sense approach.
The Left has already started with the attacks, with President Obama calling it a “far right vision”. I don’t see how you can take anything this President, or White House says, seriously anymore. One left wing critic claimed this tax would only benefit the “Warren Buffets” of the world.
Oh, really? Just recently Buffet claimed he paid about 10% on his personal taxes. So, how exactly does a 20% rate benefit him? Sounds like his taxes would stay the same under Perry’s plan. So much for Left wing honesty.
Let me just say, I wholeheartedly endorsed the Steve Forbes flat tax in the past, and I endorse the Perry, flat tax plan today. I am still not endorsing any candidate yet, however this flat tax is a big step in the right direction for Perry, and the Republican Party.
Businessman Steve Forbes