Perry's Ridiculous Tax Giveaway To The Rich

A lot is being made over Rick Perry's new "flat tax" plan. He himself claims that he his plan would simplify the tax system, but that's laughable. It actually makes the tax system even more complex. Why? Because he wouldn't do away with the current system of income taxes. He just adds a flat tax plan of 20%, and then gives taxpayers their choice of which plan they want to use.

It's pretty obvious that most people would choose to use the old system. Most workers do not make enough money to be in the 20% tax bracket, even many in the middle class, so it just makes sense to stay with the tax system they are currently using. So who will use the new system Perry is proposing? The rich -- the only people who will benefit from the new system. For them it's a giant government giveaway.

The rich will make out like bandits with the new plan. First it reduces the tax on earned income in the top tax bracket from 35% to 20% (a 43% tax cut). Then it eliminates completely any taxes on capital gains income (which is where most of the income for the rich comes from, and is currently taxed at 15%). He also would eliminate the inheritance tax completely (which only affects those inheriting at least $5 million). And finally, he would let the rich bring home the money they've been hiding overseas to avoid paying taxes, and tax that money at only 5.25%.

I've been saying for years now that Rick Perry was long ago bought and paid for by the corporations and the rich. After seeing this tax plan, can there be any remaining doubt of that. With hundreds of millions of people being hurt by this "trickle-down" recession, it's simply amazing that Perry would come up with a plan that helps no one but the rich.

The one thing he didn't explain was how he's going to keep the deficit and debt from ballooning under this new system. With the huge giveaways to the rich, and most everyone else staying the same, there is no way his new plan will bring in anywhere near the current revenues for government (which are already insufficient). How's he going to balance the budget (and yes, he wants a balanced budget amendment)?

You know how he's going to do it. He's going to balance the budget on the backs of the poor, the unemployed, the children, and the elderly. He will do just what he did in Texas -- slash all social programs (except giveaways to his rich buddies). And he will abolish Medicare and privatize Social Security (two things he couldn't do as governor of Texas, but would love to do).

This guy was a disaster as governor, and he would be even worse as president.