Rick Perry to propose flat tax as part of economic plan

Texas governor and Republican presidential candidate Rick Perry will unveil a national flat tax as part of his economic plan, according to the Washington Post.

Perry announced his plan at the Western Republican Leadership Conference in Las Vegas, but gave no details.

"A change election requires a new direction, and not more of the same," Perry said. "And I come by my conservatism very authentically, not by convenience. I offer the American people a new direction. My economic plan is rooted in what has worked in my home state."

He said his plan would scrap “the three million words of the current tax code and start with something simple, a flat tax.”

"I want to make the tax code so simple that even Timothy Geithner can file his taxes on time," Perry added.

His plan would also include "serious" spending cuts, endorse a balanced budget amendment and end earmarks "for good," he said.

"It's time to bring some tough medicine to Washington."

Another presidential candidate, businessman Herman Cain, has also proposed a flat tax.

Cain’s plan -- which received a tongue-lashing at the CNN Western Republican debate on Tuesday night -- would eliminate the current individual income tax, corporate income tax, payroll tax, and estate and gift tax. Those taxes would be replaced with a 9 percent national sales tax, a 9 percent business flat tax, a 9 percent individual flat tax.

According to an analysis by the Tax Policy Center, the 9-9-9 tax plan would give every American making more than $1 million an average tax cut of $455,000. Americans with incomes below $200,000, in contrast, would see their taxes increase under the plan.

Photo credit: Gage Skidmore