The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( TheStreet) -- While I applaud Governor Rick Perry's efforts to radically reform the tax code, his proposals for a flat tax will not lead to the needed simplicity, and most importantly will lower tax revenues dramatically while doing nothing to curtail out of control government spending. In other words, he will blow another enormous hole in an already dangerously unbalanced budget. Knowing this, the governor's pledge to balance the budget down the road should be seen as a pure fantasy. The Perry plan preserves all the sacred cow deductions and still requires many Americans to calculate taxes in the cumbersome system we have all come to hate. Tax accountants and accountants still get to keep their non-productive jobs. But by setting a cap of 20% on income, he is proposing what amounts to an inversion of the hated Alternative Minimum Tax. Instead, Perry substitutes an "Alternative Maximum Tax," that mostly benefits high income earners.
|Rick Perry is proposing what amounts to an inversion of the Alternative Minimum Tax.|