Flat tax plans are the hot topic in the republican presidental candidate race. After seeing the popularity of Herman Cain skyrocket after his proposed 9-9-9 flat tax, Texas governor and presidental candidate Rick Perry has proposed his own flat tax plan.

Perry has proposed his own flat tax plan that allows taxpayers the option to continue using the current tax code or pay a flat tax of 20%. Even though the details of his flat tax strategy hasn’t been announced, the tax plan cannot work.

In summary, the Texas governor’s flat tax plan would give taxpayers a choice between filing taxes under the current tax code and an flat tax of 20%. Those who opt for the flat tax could maintain their mortgage deductions if they earn less than half a million dollars, about 99% of taxpayers. Perry’s flat tax plan would allow taxpayers to declare exemptions of $12,500 for each family member.

At first glance the plan might look appealing but it falls short because it won’t foster growth and it would send the federal deficit even higher.

The advantages of implementing a flat tax is to encourage individuals and corporates to invest in businesses instead of looking for tax breaks and tax loopholes. By offering taxpayers the option to choose between a 20% flat tax and the current tax code, big businesses will continue to rely on their tax accountants to file under the current system.

Rick Perry’s 20% flat tax proposal appears to be nothing but a knee-jerk reaction to Herman Cain’s 9-9-9 flat tax plan.

I wonder if the governor read his plan and critiqued it with his tax accountants before announcing it!