Rick Perry is proposing letting Americans choose between their existing income tax rate or a new flat tax of 20 percent, part of a tax and spending reform plan that the Republican presidential candidate is dubbing "Cut, Balance and Grow."
"My plan restores American competitiveness in the global marketplace and provides strong incentives for U.S.-based employers to build new factories and create thousands of jobs here at home," Perry says in an opinion article published online in The Wall Street Journal Monday night.
Perry, the governor of Texas, is announcing his plan at an event Tuesday in South Carolina. The plan would "scrap the current tax code, lower and simplify tax rates, cut spending and balanced the federal budget, reform entitlements, and grow jobs and economic opportunity."
Perry's flat tax proposed would preserve key tax exemptions for families earning less than $500,000 a year and would increase the standard deduction to $12,500 for individuals.