American Morning

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October 26th, 2011
11:44 AM ET

Why Perry's 'flat-tax' falls flat among Republicans

Hoping to regain traction that he's lost on the campaign trail, Rick Perry unveiled his "flat-tax" plan yesterday, which proposes giving Americans a choice between their current income tax rate or a 20% flat tax rate.

The plan deals with some of the concerns of the flat tax plan initially proposed by Steve Forbes fifteen years ago, while simultaneously keeping some of the popular deductions that Republicans opposed eliminating in 1996.

Perry's plan preserves mortgage interest and charitable state and local deductions for families earning less than 500 thousand dollars a year. It also eliminates the inheritance tax, and lowers the corporate tax from 35 to 20 percent.

Today on American Morning, Ron Brownstein, CNN senior political analyst, joins Christine Romans to discuss the likelihood that Perry's plan will gain traction among the GOP and to weigh in on how other Republican candidates feel about the flat tax.


Filed under: Economy • GOP • Taxes
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