Rick Santorum Unveils Economic Freedom Agenda
"It is time for a President who will take a blow torch to the tax code, end the IRS as we know it, and create a new tax system for a new century - a single-rate system that is honest, simple and fair."
VERONA, PA - This afternoon, in a speech to the World Affairs Council in Ft. Worth, Texas, Republican presidential candidate Rick Santorum will unveil his Economic Freedom Agenda, with a 20/20 Flat Tax as its centerpiece.
To view the campaign white paper, with complete policy proposals, click here.
In his speech, Senator Santorum will make the following remarks (as prepared for delivery):
On why we need tax reform now:
"Four years ago, I proposed a bold tax reform plan of two low rates, with a top rate of just 28%. I use to say, if 28% was good enough for Ronald Reagan, then it was good enough for me. But since then the Obama-Biden team has presided over a culture of scandal and corruption at the IRS that is making hardworking American families lose faith in their government. I have come to the conclusion that "fixing" the current system is no longer possible. It is too far gone. It is time to drain the swamp."
On proposals by other 2016 contenders:
"What's Hillary Clinton's vision to get the economy moving? Slam investors with higher capital gains rates. Bernie Sanders? He's a socialist proposing a top rate of 90%.
What's Donald Trump's plan to make America great again? A budget-busting tax cut that would increase the deficit by more than $10 trillion.
The others? Gov. Jeb Bush wants three rates. Sen. Marco Rubio wants two. Sen. Rand Paul has proposed a single rate, plus the creation of a European-style Value Added Tax.
This isn't Europe, ladies and gentlemen. This is America! And America deserves better than socialists, budget busters, and tax code tinkerers who aren't serious about reforming a broken and corrupt Code."
On why a Flat Tax:
"It is time for a President who will take a blow torch to the tax code, end the IRS as we know it, and create a new tax system for a new century - a single-rate system that is honest, simple and fair. No longer will Warren Buffett pay less than his secretary, no longer will American industry be hamstrung on the World marketplace, and no longer will three letters, I-R-S, strike fear into the hearts of law-abiding citizens."
On why Santorum can be trusted to succeed:
"Freshmen senators in the current presidential field believe long-winded speeches qualify them to be Commander-in-Chief. Well, when I was a freshman Senator, I wrote and passed sweeping entitlement reform that ended federal welfare as we know it, dramatically reduced poverty, put millions of Americans back to work, and reduced runaway federal spending. It was so successful that now Bill Clinton tries to take credit for it. You're welcome #42.
When I opposed Hillary Clinton's socialized healthcare plan, I didn't read Dr. Seuss on the Senate floor for 20 hours, I wrote and passed Health Savings Accounts. And when Barack Obama, Hillary Clinton, and Joe Biden wanted a wait and see approach to a nuclear Iran, I didn't capitulate to the State Department, I wrote the law codifying the sanctions that have now brought the Iranian economy to its knees.
I don't just give speeches. I produce results. When I say I am going to do something, the American people can trust that it will get done. Ladies and gentlemen, this tax reform will get done."
The key components of the 20/20 Flat Tax are:
A 20% flat tax on all sources of individual income (wages, salaries, business and investment income such as capital gains and dividends) after generous exemptions to shield much of a worker's income from federal taxation ($2,750 per person credit, plus retention of the Child Tax Credit).
• No more marriage penalty.
• No death tax.
• No Alternative Minimum Tax.
• Elimination of all tax increases imposed by ObamaCare.
• Elimination of all individual tax deductions, except two - an uncapped charitable deduction to encourage generous giving to faith-based and non-profit organizations, and the home mortgage interest deduction, which is capped at $25,000 a year.
A 20% flat tax on business income.
• Provide manufacturing corporations with a jumpstart to compensate for the uncompetitive system now in place by providing a 100% income exemption on federal corporate taxation at the commencement of the "20/20 Plan" that phases out over two years. After that, U.S. manufacturers will pay the 20% flat corporate rate tax like all other businesses.
• Incentivize manufacturers to bring home to America an estimated $2.1 trillion in profits that are currently parked overseas by allowing businesses to pay a one-time 10% tax on those repatriated profits.
o Allows all capital investments in plant and equipment, including inventories, to be fully deductible in the year they are purchased.
o Elimination of the deductibility of interest expenses.
o Elimination of all other corporate deductions, loopholes & shelters.
o Absolutely no Value Added Tax - not now, not ever.
According to an analysis by the non-partisan Tax Foundation, the 20/20 Flat Tax Plan will:
• Increase the GDP by 10.2% over 10 years, above current baseline projections. This means that rather than grow at a paltry 2.3% a year, Santorum's flat tax plan will boost economic growth to at least 3.3% a year over the next ten years.
• Increase capital investment by 29%.
• Increase wages by 7.3%.
• Create 3.135 million new jobs above and beyond current job-growth projections. This means that, in combination with the impact of the rest of Santorum's Economic Freedom Agenda, the U.S. would create a total of 19 million jobs for the American people over the next decade.
