Perry's Flat Tax - A Quick Picture

CUT, BALANCE, AND GROW

CUT Taxes and Spending.  BALANCE the Budget by 2020.  GROW Jobs and the Economy.

FIX THE TAX CODE

 Institute Individual Flat Income Tax Rate of 20%

o Allow Individuals to Choose Existing Tax Code or Simple Flat Tax System

o Preserve Deductions for Mortgage Interest, Charity, and State/Local Taxes

o Include Standard Exemption for Individuals/Dependents of $12,500

o Standard Exemptions and Other Deductions are Phased Out for Filers with Annual 

Incomes Above $500,000

 Eliminate Tax on Social Security Benefits

 Eliminate Tax on Dividends and Capital Gains 

 Eliminate Death Tax

 No Federal Sales Tax or Value-Added Tax

 Reduce Corporate Income Tax Rate to 20% to Enhance American Competitiveness

o Eliminate Corporate Loopholes and Special-Interest Tax Breaks

o Transition to a Territorial Tax System

o Allow Locked-Up Overseas Capital to be Brought Back to the U.S. at a Reduced Tax

Rate of 5.25%

FIX THE FEDERAL REGULATORY SYSTEM

 Immediate Moratorium on All Pending Regulations

 Full Audit of Every Regulation Passed Since 2008

o Regulations that fail audit will be repealed

 Federal Regulations Automatically Sunset Unless Congress Renews Them

 Institute Annual Regulatory Budget for Each Agency

 Create a Searchable Public Database with All Regulations Currently in Force

FIX SOCIAL SECURITY FOR ALL GENERATIONS OF AMERICANS

 Preserve Benefits for Current and Near-Term Social Security Beneficiaries

 Protect Social Security Trust Fund

 Allow Younger Workers to Invest In Personal Retirement Accounts

 Allow State Employees to Opt Out of Social Security

 Gradually Increase Full Retirement Age to Reflect Gains in Life Expectancy

 Use Price Growth to Index Benefits for Higher-Income Beneficiaries

FIX MEDICARE AND MEDICAID TO IMPROVE HEALTH CARE

 Reform Medicare to be Sustainable for the Long-Term

 Return Medicaid Responsibility to States to Increase Health Care Quality and Access

BALANCE THE BUDGET

 Cap Federal Spending at 18% of GDP and Balance the Budget by 2020

 Reduce Non-Defense Discretionary Spending by $100 Billion in the First Year

 Demand a Balanced Budget Amendment that Does Not Raise Taxes

 End Baseline Budgeting and Require Common-Sense Scoring Rules

 Reform the Budget Process

o Institute Automatic Government Shutdown Protection

o Give Annual Budget Resolution the Force of Law

o No More Earmarks

o Require Emergency Spending to be Spent Only on Emergencies

o PAYGO for New Federal Programs

 Freeze Federal Civilian Hiring and Salaries Until the Budget is Balanced

 No More Bailouts

REPEAL JOB-KILLING FEDERAL LAWS

 Repeal ObamaCare

 Repeal Onerous Sarbanes-Oxley Regulations on Small Businesses

 Repeal Dodd-Frank