I don’t like ‘opportunity zones’ in Cain’s system. Who draws the line and how? Nor do I like a sales tax. Its one or the other, income or sales, take your pick. Not both.
At least Perry’s sets up an option (presumably for at least a while). Let the ‘free market’ decide which system people like better. It also reaches down and gets everyone in the system save those that can deduct their way out with the 12K personal deduction.
Regardless, both are better than the current system.
The criteria will be part of the very slim new tax code. It's not like they'll be decided willy-nilly.
Locales who want to voluntarily apply for designation as an OZ would have to first meet the criteria, some of which will be abolishing minimum wage laws (yes!) and implementing right-to-work laws (yes!). If they voluntarily meet the criteria and voluntarily apply, they can obtain the designation.
There actually are plenty of examples of these types of zones that have been in force already for years. For example, a rural area may obtain the designation of an "economic development zone." This gives it some favorable tax treatment under the present code.
So I don't see OZ as really a big deal in the end.
I just can't support the fact that Perry's plan leaves the present corrupt mess in place. And I don't believe it will die on its own. It will just get worse, in my view.
One thing people don’t realize is Perry is very much into each state doing what suits it best. You’ll find that he’s looking to the states rising to their own best practices and ideas.
It’s a bit early to take apart the tax system, that’s a few years out. Right now he’s more concerned with dismantling fed bureacracies and agents railroading growth and expansion.
Once we restore our economy and steam/powerwash out all the commies dragging down the USA should tax overhaul be the topic. Of course he has to address it, but he has much bigger fish to fry right *now*.