ThursdayMan | el hombre del jueves

Perry’s Flat Tax Is Simplification But Not Reform | Dick Morris

Posted in Tradition by James Pat Guerréro on 10/28/2011

PERRY’S FLAT TAX IS SIMPLIFICATION BUT NOT REFORM
By DICK MORRIS
Published on DickMorris.com on October 28, 2011

Printer-Friendly Version

I used to like the flat tax. In fact, I used to propose exactly what Rick Perry is now pushing – an optional flat tax where taxpayers could either make their way through the labyrinth of IRS fine print in search of deductions or could just pay a flat percent of their income in taxes and be done with it.

But then came 2007-2008 and the flaws in our economy became glaringly apparent: The pursuit of wealth through loopholes in the tax code and other speculative devices rather than by productive investment in economic growth. So when Herman Cain proposed 9-9-9, I was and am ready to embrace the idea.

Though imitation is the sincerest form of flattery, Perry’s rush to put his own tax reform on the table is an obvious attempt to horn in on the limelight in which Cain has basked. But the proposals are just not comparable.

Cain’s goal is to reduce the drag that the income tax puts on entrepreneurial initiative and hard work. By slashing the income tax rate, effectively, in half, he makes it that much more worthwhile to get up in the morning, take risks, work hard, take chances, and invest in progress. By eliminating the capital gains tax, he rewards investment and ownership and makes it possible for people to move up the economic ladder, not through phony teaser Fannie Mae mortgages, but by smart purchases and skillful investint.

The goal of Perry’s proposal is far more modest: He wants to cut our paperwork. He wants to make it possible to file one’s taxes in a few minutes rather than devote days and weeks to the task. He proposes, essentially, a short form for middle income and rich people so tax preparation won’t consume their lives. It’s a worthy goal. We need to trim the ranks of IRS auditors and staff and free people to make sound investment decisions regardless of the tax consequences. We need to get the IRS out of our lives and a flat tax is a good way to do it.

But Cain’s proposal is so very much more important. Perry will nibble around the edges, freeing valuable hours from tax preparation to be available for wealth creation. But Herman Cain would establish America as a beacon for investors, entrepreneurs, inventors, creative business people, and all manner of upwardly mobile, ambitious men and women. He would give the U.S. the lowest personal and corporate tax rates in the world, and the only place where investment earnings are tax free. In the process, he and his plan would kindle decades of robust economic growth. He would make the next few decades a continuation of the American Century.

To trivialize Cain’s big idea by comparing to to Perry’s small one is a vast disservice. Perry would not reduce the amount of money taken in by income and corporate profit taxation. He would just shift it to shorter forms and a nominally lower rate (but not really lower). Taxes would appear to be cut, but the amount we would have to pay would be more or less the same. He even strives to have his program seen as revenue neutral.

Cain would shift about half of our nation’s tax revenues to consumption taxes and away from income taxes. He would vastly reduce the disincentive to earn and encourage savings and investment by taxing spending.

It is not enough to undo the damage Obama has done to the economy by repealing his spending, taxing, health care, and regulatory actions. All that will do is dial us back to the sick economy Bush bequeathed to America. The diseases of the first decade of the 21st Century will still be with us. But Cain’s ideas really get at the heart of the problem — in much the same way that Reagan’s reducing of the top personal tax rate from 70% to 28% solved the stagflation of the 70s.

Cain’s reforms are the real deal. Perry’s are a pale imitation.

Subscribe to Dick’s Newsletter

Other Useful Links
DickMorris.com
Follow Dick on FACEBOOK
Follow Dick on TWITTER
See Dick’s YouTube Videos

Subscribe Button

Sign up at DickMorris.com to get Dick’s breaking thoughts on the most critical events of the day.

Please forward this email and help us spread the word!

To Advertise with DickMorris.com Click Here

About Dick Morris
Dick Morris is well known for his insightful and hard-hitting commentary on the FOXNews channel. With his wife, Eileen McGann, Dick has written 14 books, including 10 NY Times best-sellers. Together they pen almost daily columns for their website www.DickMorris.com, the New York Post, Newsmax, the Hill Magazine and many other publications. Domestically, Morris has handled the winning campaigns of more than 30 Senators and Governors, including President Bill Clinton and Republican Senate Majority Leader Trent Lott. Internationally, he has piloted the successful campaigns of the president or prime minister of Mexico, Colombia, Argentina, Uruguay, Kenya, Hungary, Poland, Taiwan, and Japan.

Morris’ and McGann’s latest book is Revolt! — How to Defeat Obama and Repeal His Socialist Agenda – A Patriot’s Guide.

Related Links:
DickMorris.com
Follow Dick on FACEBOOK
Follow Dick on TWITTER
See Dick’s YouTube Videos

COPYRIGHT 2011, DICK MORRIS AND EILEEN MCGANN.

REPRINTS WITH WRITTEN PERMISSION ONLY.

To unsubscribe from all Dick Morris Reports emails, please click here

Triangulation Strategies LLC
1801 S. Federal Hwy
Delray Beach, FL 33483
561-278-2501

Advertisements

Please be patient if comment is moderated.

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: