Perry argues these tax cuts will spur economic growth by creating a more favorable environment for wealthy individuals and corporations to start or expand their businesses.

Republican presidential candidate Rick Perry announced his plan for overhauling the federal tax code Tuesday during a campaign stop in South Carolina.

The plan Perry calls "Cut, Balance and Grow" would cut corporate taxes from 35 percent to 20, and cap personal income tax at 20 percent. The Washington Post reports that, in addition to tax cuts, the new proposal also calls for personal Social Security accounts, an optional flat tax and major slashing of federal spending.

"Perry argues these tax cuts will spur economic growth by creating a more favorable environment for wealthy individuals and corporations to start or expand their businesses," the Post reported. "But without significant spending reductions, the tax cuts could drastically increase the federal budget deficit."

Fox News reports the optional flat tax in "Cut, Balance and Grow" would let "Americans choose between their existing income tax rate or a new flat tax of 20 percent. … Perry said people taking up the flat tax can scrap the current code, and it would lower and simplify tax rates to the point that Americans could file their tax returns on a post card, which he pulled out as he spoke."

Today's a busy day for the Texas governor in South Carolina, as Politico reports that Perry also will meet Tuesday with tea party stalwart Sen. Jim DeMint.

"The meeting comes amid speculation that DeMint is moving closer to endorsing Mitt Romney — speculation that his aides strongly denied. DeMint can derive more impact from a late endorsement, and by keeping his options alive."

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