In an article in the Washington Post today, Perry releases an economic plan which includes personal accounts for Social Security, an optional flat tax, major spending cuts and a series of tax cuts. The plan would dramatically reduce taxes, particularly on wealthy Americans and corporations. Seems fair right?? No exactly! It would reduce the corporate tax rate from 35 to 20 percent, eliminate taxes on dividends and many capital gains and essentially cap individual tax rates at 20 percent.
I honestly do not see how eliminating taxes on dividends and capital gains is going to spur the economy. We are just going to make the wealthy more wealthy?? I know the claim probably is that they spend the most more, so it will boost economy but they also earn the most in capital gains. How can we eliminate taxes on this money?? If you look at where the wealthy get most of there money is it not mostly in capital gain. This money needs to be taxed! I feel like it should be taxed at the same amount as any other earnings. I am sure we have all heard Warren Buffet's secretary being taxed at almost twice as much as he is. Buffet was taxed at 11.7 percent on the $48 million he made last year, while his secretary, who earned $60,000, was taxed at 30 percent. How can this be fair??? Taking more money out of the pockets of the people who need it the most.
http://www.washingtonpost.com/politics/perry-calls-for-major-spending-and-tax-cuts/2011/10/25/gIQAu7OUEM_story.html
It seems like this new tax code he wants to implement is going to be like Reagan's of the 1980's. The theory is the "trickle down theory", if a big business gets to save money on their rates and gains then they theoretically will pump it back into the economy. On the other hand, giving tax cuts to the middle class and lower income earners will save them money. However, the money these earners save will be used to pay off debt they have accumulated over the years. Its almost a catch 22 for both earners to benefit. It doesnt seem right to tax the wealthy companies who may re-invest that money back into their business, but it also should be on the middle class to take on that burden. We are trying to get the economy better, we just need to figure out what kind of tax will get us there.
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