Transcript for Flat Tax Politics
And now. In the -- and. Won't be satisfied frankly until -- first. That hopeful will be -- You remember all of of those who died in board history. The Pentagon released the names of ten service members. Killed in Iraq and Afghanistan. Welcome to the it -- -- -- all tax and it. Until march of course is that many flat tax booklets over the earth Steve Forbes as it they'll grant -- then and then a technical apparently. Military. -- what makes this year different. The fact I think that. Resentment of the IRS is reaching critical mass -- that the IRFs itself says we spent six. Billion hours a year that's -- crew of three million full time jobs. Complying with this -- The fact that if you if if tax compliance -- industry and -- -- the largest and he's in the country. Employs more people don't work for city court UPS Wal-Mart McDonald's. Combined. But haven't I don't think you use different if I think that we will see the -- tax recreation room once again. You know -- The reason that America has used the tax code for social goods because we'd like the private sector. And so deep Western Europe has you know basically and very socialism to do all of these things -- we have embraced is having business. Do our health care and our universities. And our arts and all of that and -- -- and our our housing. With garden apartments from middle class people all of that. And you know you might like or dislike that but that's a result of the tax code. And that is something that Americans tend to like a whole lot better than having government. Perry's proposal is flat tax 2.0 because he does try to respond to. The specific complaints that sank in 1960s it -- Forbes if it ended up being negative seaports and 96 largely because he couldn't sell the idea. Eliminating the mortgage deductions charitable deductions and local -- Perry leaves all of those but he remains he continues to have the blue route and optional. Phoenix it so we try to respond but yet you still the big issues. Equity because they reduce its operational entity taxes on capital gains and dividends and interest inevitably you expect that people up. Annual questioned whether you can fund the government -- who has -- it. Is apps -- dynamic scoring economic growth increasing. It loses 900. Billion dollars a year by 20/20 unit which is more than double the cost. The choice of doing it. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I think yours on this -- with a flat tax or some of the other proposals there's a simplification. Side and then there's the rates. Now I think if people wanted to make a deal. You could maybe make some deal about simplification. And for a bunch of people two thirds of the country doesn't even itemize you could make. Their tax -- extremely simple without doing anything. I think when you say there's not a lot of sentiment to make it all and be. When you staple it to the issue of dropping the top marginal -- -- you know -- one person literally makes a hundred million dollars a year is gonna get twenty million dollar tax cut. I think that the chances they go for the simple agency. I always wondered why the market for polls always a limiting. Acts. That's why we made. This argument why wouldn't be so for the same rate as everybody else because he's -- Well president -- as part of double taxation but there are in the nineteen in the 1980 Ronald Reagan -- and tax. Operate from seventy to 20%. Which radically -- -- -- the mortgage interest deduction yeah. Housing sales and housing values went up if you can get economic growth going all kinds. Actually contributions went down. One because it's a 70% was on unearned income -- things that I'm is that institutions particularly universities now. That people who when it costs them you know. It cost them a great deal less money to give a 100000 dollars it's -- you know that's not obviously politically relevant. Perry does not revive his campaign recovered but -- it doesn't fascinating is that you know the Republican electorate has -- it. It's much more blue collar it's much more downscale it used to be a lot -- working class voters and it. And we -- Mitt Romney made the same kind of class conscious argument against -- flat tax -- asked him. That he made against Steve Forbes in 1996. Even in the Republican primary in the Romney's run in Romney's plan. It's bill. Primarily geared to let's cut the high income rates and make that that driver of growth now. I don't actually think it is but the cutting operates in cutting the corporate tax rate. They've cut up all pitch their lot with that's going to be their strength of one -- -- -- a primary difference Romney does. -- has cut interest and capital gains all hello you know. It is -- this is Mitt Romney with his background working class warrior against that we are in primary and if I asked him what he will have to -- If they want a president room 200000 dollars and governments crucial threshold we got -- And -- It is. It. -- Now we not now not. -- economic he embraced the debate -- -- -- brigades and why not throw out there isn't just something simple. And -- he appeared to embrace know it needs to be complicated we can -- -- -- now that there may be elements of truth that some big mistake. Because McCain is people don't. Any of these. Actions. And and that's wrong. But 59. Is an index the -- God had ten commitments Woodrow Wilson blocked I don't know -- had 57 varieties this guy's got 59. If you got the right three -- -- Yeah although I would say again for his half of the party it is more managerial war college educated more secular. This kind of a world there used and he is someone who's operated network equipment managers he I think he is not just. Tolerant tolerable nominee is someone they can actually we need a manager for the economy for those who want bigger change -- presidents and come here and you know go to war against the parasite class and -- rock through the windows of the capital. You probably never going to be acceptable to them yeah question is whether they can ever unify behind one candidate try to stop it and right now as just days -- I don't watch it here. It -- -- this conversation and it's not. This is needed it and he -- arm. And. Source Philadelphia achilles' heel injury Perry -- social issues.
This transcript has been automatically generated and may not be 100% accurate.