Sadly, during the years of prosperity that followed the Reagan reforms, the US Congress under both Republican and Democratic leadership used the good times to once again load the tax code full of crony capitalism, kickbacks to favored groups. Now the system is collapsing under the weight of this corruption.
Obama's answer is raising rates even higher so he can give out even more favors to his chosen groups. This solution will only make the problems with the tax code even worse. Billionaires like Warren Buffett can always game the system, while the middle class gets fleeced. Buffets hypocrisy in supporting Obama's plans is astounding while the firm he runs Berkshire Hathaway is legendary for its ability to avoid taxes and currently owes over a billion dollar is back taxes.
Perry's plan would fix all this and lower rates even further than Reagan did. Maybe this is the elixir that can get his campaign back on track. Steve Forbes thinks so. He told the Wall Street Journal this week, "I'm very, very excited by it. What Perry is proposing is a radical simplification of the income tax code....It's finally coming to pass."