Republican presidential candidate Herman Cain has been touting his 9-9-9 Plan and now Governor Perry offers his version of the flat tax.
Cain’s plan calls for a 9% business tax, a 9% personal income tax and a 9% federal sales tax. It’s actually a little more complicated that that, but it is a proposal to drastically change federal taxation as we know it.
Now Perry proposes Cut, Balance and Grow; a 20% flat tax on both business and personal income (although he says you can keep paying 35% if you prefer). Perry also proposes the first $12,500 of income per person tax free and allowing deductions for taxpayers with less than $500,000 in income (that’s just about everyone). He will also eliminate taxes on social security income and investment income.
Both plans are decried by critics as regressive, rich-people-centered give-aways, but is that really the case? Will they stimulate the economy? Will they raise needed revenue?
What do CPAs think about these radical proposals? Check out the links and let us know what you think.