Republican presidential candidate Rick Perry unveils flat tax plan

GRAY COURT, S.C. (AP) -- Republican presidential candidate Rick Perry is proposing a sweeping economic plan that includes a flat tax proposal, private retirement accounts for Social Security, a lower corporate tax rate and reforms aimed at keeping Medicare solvent.


The Texas governor on Tuesday outlined a proposal he calls "Cut, Balance and Grow" that he says is bolder and more aggressive than what President Barack Obama or his other Republican rivals would do.

Perry said his plan "doesn't trim around the edges, and it doesn't bow down to the establishment."

Perry's plan sets a flat 20 percent income tax rate, but also gives taxpayers the option of sticking with their current rate. He wants to raise the retirement age in Social Security and set Medicare benefits based on income levels. Perry says he would end corporate loopholes and lower the corporate tax rate to 20 percent.