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.
This morning, President Obama and Republicans are squaring off over how to reduce the national deficit after President Obama unveiled his plan in a speech at the Rose Garden yesterday.
At the heart of Obama's proposal is $1.5 trillion dollars in new revenue generated largely by higher taxes on the wealthiest Americans, a proposal strongly opposed by GOP leaders who insist that any tax increase will undermine an already shaky economy.
Representative Jeff Flake is one of the Republicans in the House that opposes Obama's plan. Flake speaks with Carol Costello on American Morning today to discuss reducing the national deficit and to weigh in on how to create jobs in America.
"We're not out of the woods yet and if we want the economy to grow, we have to have competitive tax rates plus some kind of moratorium on regulation," Flake says. "If we want to create jobs, the last thing you want to do is slap another tax or a higher tax on capital gains or dividends."
This afternoon, President Obama will propose a "Buffett Tax" on people making more than $1 million a year as a part of his deficit recommendations to Congress, intended to generate $1.5 trillion dollars in new revenue, the majority of which will come from high-income households.
Obama's plan details that $800 billion will come from letting Bush-era tax cuts for the wealthy expire, and another $400 billion will come from capping the value of itemized deductions and other exemptions for high-income housholds. The final $300 billion will come from closing loopholes that benefit oil and gas companies, private jet owners, and investment fund managers.
Jay Powell, Treasury Under Secretary under President George H.W. Bush, discusses the effectiveness of Obama's proposal on American Morning today and weighs in on whether or not the "Buffet Tax" is likely to make a real difference in the national deficit.
Warren Buffett, who called for Congress to raise taxes on the wealthiest Americans in an op-ed published in the New York Times yesterday, isn't the only mega-rich person asking to be taxed to help improve the economy.
In July, the organization Patriotic Millionaires wrote a letter to Congress urging them to raise taxes on Americans with incomes of over $1 million a year. Garrett Gruener, co-founder and director of Alta Partners, also wrote an op-ed, published in the Los Angeles Times, calling for lawmakers to let the Bush tax cuts to expire for the wealthiest Americans.
Gruener joins Christine Romans on American Morning today to explain why he thinks top earners should pay more and to respond to critics who claim that raising taxes will deter businesses from hiring.