Santorum sees federal flat tax reform as an economic growth engine

URBANDALE - Former Pennsylvania Sen. Rick Santorum said Wednesday he, in formulating a tax reform plan establishing a 20 percent federal flat rate on all income for individuals and businesses, promises to be a catalyst for U.S. economic growth, especially the manufacturing sector.

The 2016 GOP presidential candidate told members of the Westside Conservative Club that he soon will propose the 20 percent flat tax on personal, corporate, capital gains and other income that is projected to be revenue neutral for government but would allow businesses to write off expenses, including capital equipment, rather than jumping through hoops like depreciating or amortizing purchases.

The change won't raise taxes for Americans currently paying less than 20 percent because his plan will provide a 'pre-bate” tax credit of up to $3,000 per taxpayer that will be applied at the front end of the process similar to 'fair tax” proposals while maintaining deductions for home mortgage interest, charitable contributions and health care/pensions but getting rid of the deductibility of state and local taxes, he said.

'No one in America is going to pay more taxes than they're paying right now,” Santorum said. 'I'm not going to put forth a tax proposal that's going to increase taxes on any group of Americans. But by lowering the rate and getting rid of all of the muck in the code, you basically take a blow torch to the tax code - get rid of it - and replace it with this 20 percent flat tax.”

He noted that GOP rival Sen. Rand Paul of Kentucky is offering a 14.5 percent rate, but he said Paul's plan also calls for a value-added tax, or national sales tax, that makes it less attractive for taxpayers.

Santorum said his tax proposal - which also eliminates the federal inheritance tax - will act as a very strong economic driver for America that will help usher in an unprecedented 'economic renaissance” with the country re-establishing itself as a top manufacturer.

'It's a very simple, very pro-growth plan to get this country going again,” Santorum said.

Talking with reporters after the event, Santorum said he is not happy with the televised Republican debates that may exclude GOP candidates in the future based on national polling data that are 'an affront to the primary process” and discount the importance of early states like Iowa and New Hampshire that put a premium on retail politicking.

Santorum, who had low single-digit polling numbers four years ago before pulling a surprise win in Iowa's 2012 leadoff caucuses, said he is employing a similar strategy this year by already visiting all 99 Iowa counties and meeting face-to-face with voters.

'That strategy tends not to be an early producer. It's a late-season crop,” he noted. 'We feel like that's a game plan that worked for us very well four years ago and it's a game plan we're sticking to. It's a slow and steady wins the race plan.”