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. But without significant spending reductions, the tax cuts could drastically increase the federal budget deficit. 
 
 “Taxes will be cut across all income groups in America, and the net benefit will be more money in Americans’ pockets with greater investment in the private economy,” Perry said to an audience of more than 200 inside the factory at ISO Poly Films, Inc. in this South Carolina town. 
 
 The “Cut, Balance and Grow” plan, which Perry first unveiled Tuesday in an op-ed in the Wall Street Journal, puts Perry firmly to the political right of former Massachusetts governor Mitt Romney in terms of economic policy. 
 
 As he releases the tax plan, Perry seems determined to re-energize his campaign and reassert himself as a candidate after weeks of struggles. In an interview with John Harwood, a reporter with CNBC and the New York Times, the Texas governor cast Romney — the GOP frontrunner — as a “fat cat”. He said he likes mentioning conservative falsehoods about President Obama’s birth because “It’s fun to poke him a little bit.” 
 
 Perry is clearly looking to woo tea party conservatives who have been reluctant to back Romney. In almost every way, he presents policies that are slightly more conservative than those of the former Massachusetts governor. 
 
 Romney has called for capping federal government spending at 20 percent of GDP, for example; the Texas governor proposes capping at 18 percent. (This year, under President Obama, spending is at 24 percent of GDP). Romney has proposed raising the retirement age to reform Social Security; Perry adopts an idea even more beloved by conservatives and hated by liberals: allowing young people to put their money into private savings accounts outside the traditional retirement system. 
 
 Romney would cut corporate taxes to 25 percent; Perry, 20. Although Romney has said one of his goals is a “flatter” American tax code, under Perry’s plan, Americans could either choose to pay taxes under the current system, or pay a 20 percent national flat tax. 
 
 Conservative activists have long called for the adoption of a flat tax. Indeed, Perry’s proposal for such a tax as an option is similar to one by former House Speaker Newt Gingrich, who would set the optional flat tax at 15 percent. Gingrich is also seeking the 2012 nomination. 
 
 Overall, Perry’s vision would call for much larger tax cuts and spending cuts than Romney’s proposals. It creates an even larger divide between him and Obama. If enacted, Perry’s plan probably would result in huge cuts to domestic spending programs and major tax cuts, particularly for the wealthy. ||||| Video 
 
 Gov. Rick Perry of Texas is seeking to jump-start his Republican presidential campaign by proposing a new tax system: a 20 percent flat rate on individual and corporate income, down from the current 35 percent top rate, and elimination of existing taxes on estates, capital gains and dividends. He sat down with John Harwood of The Times and CNBC to discuss the plan, his challenge to a Republican rival, Mitt Romney, and other issues. What follows is a condensed, edited transcript of their conversation. 
 
 Q. 
 
 Your plan — by cutting the top rate to 20 percent, eliminating dividends and capital gains taxes, would provide a huge tax cut to wealthy people. Given what’s happened with income inequality, why is that a good idea? 
 
 A. 
 
 We’re trying to get this country working again. And that’s what I focus on. We went through what are the ways to really give incentives to those that are going to risk their capital to create the jobs. Those that want to get into the class warfare and talk about, oh my goodness, there are going to be some folks here who make more money out of this, or have access to more money, I’ll let them do that. 
 
 Q. 
 
 But for those at the top, it is hundreds of thousands, maybe even millions of dollars for them. 
 
 A. 
 
 But I don’t care about that. What I care about is them having the dollars to invest in their companies. To go out and maybe start a business because they got the confidence again because they actually get to keep more of what they work for. If that’s what comes, I’ll take that criticism. Because what I’m interested in is getting Americans working. 
 
 Q. 
 
 Do you fundamentally believe we should not have a progressive tax system in this country? 
 
 A. 
 
 I do. I think you need to have a tax system that basically is flat, fair and simple. And that you can put on a postcard. Americans, I hope, aspire to be wealthy. 
 
 Q. 
 
 In 1996, when your adviser Steve Forbes was running on a flat tax, Mitt Romney said it was a tax cut for fat cats. If he says that about your plan, what are you going to say to him? 
 
 A. 
 
 Well, I would say that he ought to go look in the mirror, I guess. I consider him to be a fat cat. I consider what Mitt’s doing kind of nibbling around the edges. I consider what we’re doing bold. 
 
 Q. 
 
 Even if your plan increases growth, that’s going to take time. Year one, year two, you’re going to blow a huge hole in the deficit, right? 
 
 A. 
 
 I don’t think it does. The budget deficit needs to be addressed through a number of ways. We think this will balance the budget by 2020. And you’ve got to have some hard cuts. You’ve got to deal with the entitlement issue. I’m looking long term. I’m looking to get this country back on track. If you’re looking for somebody that’s going to nibble around the edges, if you’re looking for somebody that’s going to say, “Hey listen we’re not going to make it hard on you, it’s all going to work it out, and it’s just, you know, kumbaya,” I’m not your guy. 
 
 Q. 
 
 You would raise the retirement age for Social Security, and also limit the benefit calculation for high earners. How much do you have to make before your benefits are reduced in that way? How high would you raise the retirement age? 
 
 A. 
 
 I’m not ready to give some hard numbers on that one. But those are the types of thoughtful debates that we need to be having with Congress. 
 
 Q. 
 
 Why did you choose to keep the birther issue alive? 
 
 A. 
 
 It’s a good issue to keep alive. You know, Donald [Trump] has got to have some fun. It’s fun to poke him a little bit and say “Hey, let’s see your grades and your birth certificate.” I don’t have a clue about where the president — and what this birth certificate says. But it’s also a great distraction. I’m not distracted by it. 
 
 Q. 
 
 In the last debate, what were you thinking when Mitt Romney put his hand on you? 
 
 A. 
 
 I wasn’t giving a thought to it. 
 
 Q. 
 
 You have this proposal to dramatically cut taxes for people at the top and you want to repeal Dodd-Frank, going back to the old system of regulation of Wall Street. How would you explain that to Occupy Wall Street? You think the previous regulation on Wall Street was adequate? 
 
 A. 
 
 Yes, absolutely, I think it was adequate. We had a bunch of regulators that weren’t doing their job. Here’s what I would tell those young people — the old Churchill saying, you’re a liberal in your heart when you’re 20, and you’re a conservative when you’re 40. I hope what they will see is that America’s a fabulous country and it gives them the opportunity to go say your piece, go protest on the street. But at the end of the day America’s about having the opportunity to take care of your family. 
 
 Q. 
 
 If a member of the Tea Party in South Carolina says, “I’m trying to take care of my family. Why are you giving millions of dollars in tax cuts for people at the top?” What do you say to them? 
 
 A. 
 
 I say to them that we want those people at the top to be investing in this country so that you have a chance to have a job. Because that’s the way this country has always worked. ||||| The Perry campaign announced Monday that it has hired several veteran operatives with national campaign experience to augment a team that had been dominated by people who had long work histories with Perry in Texas. 
 
 The most notable of the new hires is senior adviser Joe Allbaugh, who was campaign manager for George W. Bush’s presidential run in 2000. 
 
 The personnel moves came as Perry prepared to give a speech Tuesday in South Carolina in which he will announce a proposal for a national flat tax to replace the current income tax system. Perry, who has largely avoided interviews in his first two months as a candidate, will hold a news conference after the speech in Columbia. Meanwhile, his campaign will start running television commercials this week in Iowa in an effort to reintroduce Perry to Republicans in the first state that will vote in the primary process. 
 
 The shifts come after a series of lackluster debate performances that left Perry trailing not only former Massachusetts governor Mitt Romney but also businessman Herman Cain in polls. Romney is now considered the favorite in the race, while Cain has grabbed a chunk of the anti-Romney vote that was expected to gravitate to Perry. 
 
 Perry’s embrace of the flat tax could help him win back conservatives who like Cain’s proposal to overhaul the tax code and replace it with his “9-9-9” plan, which includes a national sales tax. 
 
 Perry aides said the new hires were not a reaction to criticism from fellow Republicans who say the candidate has struggled to present a vision for the country beyond repeatedly citing his record in Texas. While dismissing debates as a “fraction” of the nomination process, the aides emphasized Perry’s advantages: a record of winning tough campaigns in Texas, the unwillingness of many grass-roots Republicans to back Romney and the $15 million that Perry has left in campaign funds, more than nearly all of his rivals. 
 
 Fresh faces 
 
 The aides portrayed the new advisers and the speech as simply a natural evolution in the campaign, even as other Republicans said the hires were a clear sign that Perry’s Austin-based operation had not succeeded over the past two months. 
 
 “These experienced advisors will play an instrumental role in helping me share my vision to get America working again with the nation, and I am proud to have their support as our campaign expands,” Perry said in a statement announcing the hires. 
 
 But several Perry supporters, who did not want to criticize the campaign publicly, say the governor, whose candidacy was announced with great fanfare in August, must seize what they believe may be one of his last opportunities to reverse his fortunes. 
 
 They hope that his speech on Tuesday will address his most glaring vulnerability: a perception that he lacks intellectual heft. 
 
 “You’ve got to have command of the issues,” said one GOP donor who backs Perry.
– Rick Perry's busy day, one being perceived as his camp's attempt to recharge his flagging campaign, continues in South Carolina as he rolls out his flat tax plan. A key quote from his speech: “Taxes will be cut across all income groups in America, and the net benefit will be more money in Americans’ pockets with greater investment in the private economy." His "Cut, Balance, and Grow" plan puts him to the right of Mitt Romney on fiscal policy, notes the Washington Post. (He wrote about the plan in the Wall Street Journal.) In an earlier interview with the New York Times, Perry said he wasn't bothered that it benefits the rich. "What I care about is them having the dollars to invest in their companies." Other tidbits: On Romney: "I consider him to be a fat cat. I consider what Mitt’s doing kind of nibbling around the edges. I consider what we’re doing bold." On Obama's birth certificate: " It’s a good issue to keep alive. ... It’s fun to poke him a little bit and say, 'Hey, let’s see your grades and your birth certificate.' I don’t have a clue about where the president—and what this birth certificate says. But it’s also a great distraction. "