|Texas Gov. Rick Perry|
NEW YORK ( TheStreet) -- Rick Perry unveiled his tax and spending reform plan on Tuesday, which includes an optional flat-tax rate and spending cuts. Perry's plan looks to give Americans the choice between a 20% flat-tax rate or their current income rate. The Texas governor wants to let people file taxes on a postcard and save up to $483 billion in compliance costs, according to an opinion article Perry wrote in the The Wall Street Journal.
"The new flat tax preserves mortgage interest, charitable and state and local tax exemptions for families earning less than $500,000 annually, and it increases the standard deduction to $12,500 for individuals and dependents," Perry wrote. Perry said his plan would lower the corporate tax rate to 20% to make it with the United States' global competitors. He also said that his presidency would repatriate some $1.4 trillion U.S. dollars that are overseas, which the governor said he would encourage by temporarily lowering the rate to 5.25%. Perry said he wanted to cap federal spending at 18% of gross domestic product by passing a balanced budget Constitutional amendment. Perry said he would preserve the benefits of Social Security, but offered no specific steps to save the entitlement program. He said cut, balance and grow would allow young workers the option to "own" Social Security contributions through personal retirement accounts, so as to keep the government from dipping into citizens' pockets. -- Written by Joe Deaux in New York. >To contact the writer, click here: Joe Deaux. >To follow the writer on Twitter, go to: http://twitter.com/JoeDeaux. >To submit a news tip, send an email to: firstname.lastname@example.org