Earlier today, I offered my initial critique of Texas Gov. Rick Perry’s economic plan, but some new details emerged in a morning conference call with his economic team.
On Social Security, in addition to allowing younger workers to invest in personal accounts, Perry supports gradually raising the retirement age and changing the measure of inflation that is used to calculate Social Security benefits. None of these changes would apply to those at or near retirement.
Perry supports block granting Medicaid to the states, and while his plan doesn’t have a specific Medicare proposal, on the call, economic advisor Sean Davis laid out several principles. Perry would support gradually raising the retirement age, moving toward a more market based system and fighting waste, fraud and abuse. Davis said he would work with “thought leaders” like Rep. Paul Ryan, R-Wis., and Sens. Tom Coburn, R-Okla. and Jim DeMint, R-S.C.
As I noted in my prior post, taxpayers would have the choice between remaining in the current code, or filing under a new “flat tax” with a 20 percent rate and deductionsnfor mortgage interest, charity and state and local taxes that would be phased out for those earning under $500,000. It would also up the standard deduction to $12,500 for individuals and dependents. Davis said that the campaign ran the numbers, and assumes that most Americans would choose the flatter tax code.
Perry is scheduled to formally unveil his plan in a speech in South Carolina at 11 a.m. Eastern time.
