At a moment when the fragility of the economy ranks at the top of American concerns, sharp differences have begun to emerge in how the leading GOP presidential contenders would solve the problem — illuminating not only a diversity in approach, but a striking contrast in the candidates’ governing philosophies.
The proposals range from those that are incremental, complex and possibly achievable, to slogans and ideological rallying cries that would have enormous difficulty becoming law.
Latest to put forward a blueprint is Texas Gov. Rick Perry, a former front-runner who fully embraced a number of longstanding and far-reaching conservative goals.
“My plan does not trim around the edges,” Perry said as he announced it Tuesday in South Carolina.
The centerpiece is a proposal that would give individuals the option to pay a 20 percent flat tax. Perry also would reduce the corporate tax rate from 35 percent to 20 percent; eliminate taxes on dividends and capital gains; make deep, unspecified cuts in federal spending; and establish individual retirement accounts outside the Social Security system.
The plan represented a sharp and intentional contrast to the less radical 59-point proposal put forward last month by former Massachusetts governor Mitt Romney, the front-runner for the Republican nomination.
Although Perry did not mention his chief rival by name, he spoke dismissively of those who “simply offer microwaved plans with warmed-over reforms based on current ingredients.”
Perry won strong praise from conservative economists and activists, who were pleased that he adopted many of their long-held goals. In doing so, his plan could help reverse the slide his campaign suffered as the result of his weak performances in presidential debates.
“I am impressed at the level of detail. For someone who was supposed to be thin, there’s a lot there,” said Douglas Holtz-Eakin, who in 2008 served as top economic adviser to GOP nominee John McCain’s campaign. “This is a very close cousin to some very serious plans that have been put forth historically.”
Perry said his proposal would also offer benefits to middle-class Americans by giving a $12,500 deduction for every member of a household while preserving exemptions for state and local taxes, mortgage interest and charitable contributions for anyone making less than $500,000. He said anyone could still file under the current code, and he also pledged to lower the corporate tax rate to 20 percent, from 35 percent.
"The net benefit will be more money in Americans' pockets, with greater investment in the private economy instead of the federal government," he said.
The plan represents a gamble for Perry, who is trying to reinvigorate a once-high-flying campaign by capturing some of the energy that Herman Cain generated with his flat tax plan and by drawing a sharply conservative contrast with Mitt Romney.
The plan also proposes reducing the scope of the federal government by requiring federal budgets that spend no more than 18 percent of the nation's gross domestic product. That would equate to a cut of one quarter of the budget from 2011 expected levels.
To address the projected financial shortfall for Social Security, he suggested raising the retirement age and potentially changing the age eligibility for Medicare and using a sliding scale to limit benefits based on income.
Perry said his plan would balance the budget by 2020.
All about: USA Today, Fox News, The New York Times, New York City , Chicago, Washington, D.C., Los Angeles, Douglas Holtz-Eakin, John McCain
The proposals range from those that are incremental, complex and possibly achievable, to slogans and ideological rallying cries that would have enormous difficulty becoming law.
Latest to put forward a blueprint is Texas Gov. Rick Perry, a former front-runner who fully embraced a number of longstanding and far-reaching conservative goals.
“My plan does not trim around the edges,” Perry said as he announced it Tuesday in South Carolina.
The centerpiece is a proposal that would give individuals the option to pay a 20 percent flat tax. Perry also would reduce the corporate tax rate from 35 percent to 20 percent; eliminate taxes on dividends and capital gains; make deep, unspecified cuts in federal spending; and establish individual retirement accounts outside the Social Security system.
The plan represented a sharp and intentional contrast to the less radical 59-point proposal put forward last month by former Massachusetts governor Mitt Romney, the front-runner for the Republican nomination.
Although Perry did not mention his chief rival by name, he spoke dismissively of those who “simply offer microwaved plans with warmed-over reforms based on current ingredients.”
Perry won strong praise from conservative economists and activists, who were pleased that he adopted many of their long-held goals. In doing so, his plan could help reverse the slide his campaign suffered as the result of his weak performances in presidential debates.
“I am impressed at the level of detail. For someone who was supposed to be thin, there’s a lot there,” said Douglas Holtz-Eakin, who in 2008 served as top economic adviser to GOP nominee John McCain’s campaign. “This is a very close cousin to some very serious plans that have been put forth historically.”
Perry said his proposal would also offer benefits to middle-class Americans by giving a $12,500 deduction for every member of a household while preserving exemptions for state and local taxes, mortgage interest and charitable contributions for anyone making less than $500,000. He said anyone could still file under the current code, and he also pledged to lower the corporate tax rate to 20 percent, from 35 percent.
"The net benefit will be more money in Americans' pockets, with greater investment in the private economy instead of the federal government," he said.
The plan represents a gamble for Perry, who is trying to reinvigorate a once-high-flying campaign by capturing some of the energy that Herman Cain generated with his flat tax plan and by drawing a sharply conservative contrast with Mitt Romney.
The plan also proposes reducing the scope of the federal government by requiring federal budgets that spend no more than 18 percent of the nation's gross domestic product. That would equate to a cut of one quarter of the budget from 2011 expected levels.
To address the projected financial shortfall for Social Security, he suggested raising the retirement age and potentially changing the age eligibility for Medicare and using a sliding scale to limit benefits based on income.
Perry said his plan would balance the budget by 2020.
All about: USA Today, Fox News, The New York Times, New York City , Chicago, Washington, D.C., Los Angeles, Douglas Holtz-Eakin, John McCain
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