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Gov. Perry Unveils His Flat Tax Plan

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    Gov. Rick Perry, (R-Texas), on his effort to simplify the tax code.

  • Duration 5:15
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Lured -- loaded for bear and now in flat out war which meant flat tax war that is the Texas governor rebelling today simpler tax -- He says his front running opponent Mitt Romney is too timid offer and -- rising star McCain is -- is well confusing to understand.

Not 999 -- just twenty.

That is the new flat tax governor Perry is calling for still you know like a 20% income tax rate the governor says you can opt out.

But He thinks he'll want to stay with them because his plan a bottles is the estate tax wipes out the tax and Social Security benefits.

And eliminates attacks on qualified dividends long term capital gains -- like that.

Corporate taxes will be cut to 20% as well from 35% now.

Now the devils and a lot of the -- -- but Rick Perry thanks a real -- is in the massive attacks -- we have right now.

They're -- president's -- is joining me right now governor good and you.

Those good to be are you sir thank you I think that is a very good descriptive term the devil is in the details of the tax code we've got today.

OK so you -- it with this flat tax governor stated you don't like it.

You don't have to take it but what does that mean that you -- -- will there will be rival tax systems.

Well -- to give people a choice I mean there maybe some people would have.

Sets their business plan in place with the old tax code and that they look at and they say you know what that's where we really need to stay for whatever reasons.

And they can do that or somebody can take that piece of Paper right there fill it out with the deductions that we talk about 20% send it back in in their done.

I -- think there a lot Americans that are relishing today that -- get rid of all the lawyers and the accountants and have a simple flat.

Tax code when 20% tax rate.

121500.

Per -- individual deduction.

And just go forward with I think Americans -- dying to see that type of a simplicity in their tax code plus.

It's a tax cut for every group out there are no matter where you are and a in the stratosphere.

You're gonna be getting a tax -- Do you worry they'll governor that if you keep even as an option the old tax and as we have it.

You're gonna get the same criticism Herman Cain has gotten that is you have a sales tax are just gonna be piling it on top of the income taxes we have not and now I'll be to lower rates.

No not at all as a matter fact there's not a sales tax in this for one thing there's not a value added tax his sister straight 20% flat tax.

-- personal and corporate side.

And so I I think the simplicity of this is what Americans are looking for.

In the rest of my plan -- talk about a host of other things like pulling back all these regulations that's what's really kill in the jobs in America today for -- rid of obamacare get rid of sarbanes under way.

Dan and I will get into that governor I just want to be clear -- wanting.

Again without -- this point of keeping two different tax codes and affect.

Hoping that people -- You know our tractor dealers.

What happens to terrorists deductions along the way the charitable deductions and mortgage and our gentlemen and.

-- when asked us stay in place mortgage deduction stay in place cells and local cell -- And and local taxes stay in -- those deductions will still be there.

Up to 500000.

Dollars above that then.

They go away but for most of the people out there those deductions that they've had before still going to be there get rid of the capital gains here in the death tax.

Mean this is simplifying this system greatly.

Do you think that in the switch to it governor.

That.

Whatever revenue.

It it triggers a long -- -- most people agree that.

Tax cuts down the road do trigger revenues it's in that interim period.

That you have to make up for the revenues that are lost as those tax cuts come down the tax rates as a second down.

How what do you do for that and critics of -- or -- saying.

What the governor's proposing is certainly not near term revenue neutral.

Well the we have a model that shows this balances the budget by twenty -- -- -- So eight years down the road we're gonna have a balanced budget obviously have a balanced budget amendment the United States constitution to pass this -- in that period of time to.

Listen -- there there's going to be some hard choices made out there they're gonna be some hard decisions by.

And and if anybody stands up and says listen this all going to be easy and it's all -- -- be just you know sleuths blue sky and smooth sailing it's not.

We didn't get into this problem overnight we're not gonna get out of it -- or not but I guarantee Americans are looking for some by -- got the courage to stand up and say.

Here's how you fix our tax system to get a simpler here's how you fix these entitlement programs here's -- -- -- -- so security.

Making sure that our people that are also security in fast approaching that it's going to be their farm.

But our younger kids given the option of being able to have of our private account.

That's what Americans are looking for the looking for solutions they are not looking for somebody to stand up and say everything's going to be five everything's going to be easy this is kick the can down the road.

They're looking for a literal stand up what I'm -- I like I'm doing right now it's -- and here's how to balance -- budget here's how to get our tax system fair and flat and simpler.

That's what Americans looking for get this country.

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