Speaking at the University of Chicago’s Harris School of Public Policy Studies, across the street from where Obama once lectured at the law school, Pawlenty contended his proposals – combining lower tax rates with an emergency freeze on spending – would be a “better deal” than what the Obama administration was offering.
“How are you enjoying your recovery summer? That’s what the president said we were having. But that was last year,” Pawlenty said. “Gas is nearly $4 a gallon. Home prices are in the gutter. Our healthcare system – thanks to ‘Obamacare’ – is more expensive and less efficient. Unemployment’s back over 9%. Our national debt has skyrocketed. Our budget deficit has grown worse. And the jobs and manufacturing reports are grim.
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Later, Pawlenty told reporters if economic growth fell from his target of 5% to “4, 3, 2 or 1%, then we’re in deep doo-doo. We are in deep crap.”
Pawlenty proposed cutting the federal corporate tax rate from 35% to 15%, coupled with closing loopholes. For individuals, Pawlenty said he was proposing a “simpler, fairer, flatter” tax system. Those who currently don’t pay income taxes wouldn’t be affected. But he would impose a 10% tax rate on the first $50,000 of individual income and on joint income up to $100,000. Income above those levels would be taxed at 25%, well below the current maximums.