Former Massachusetts Governor Mitt Romney, who polls show is vying with Cain for frontrunner status in the nomination contest, wants to extend expiring income tax cuts, eliminate the estate tax and get rid of taxes on investment income for people making less than $200,000. Romney's plan also would cut the corporate tax rate to 25 percent from 35 percent.
Perry's plan would cut the corporate tax rate to 20 percent and eliminate corporate breaks. He would allow multinational companies to repatriate profits earned overseas at a 5.25 percent rate and would set up a territorial tax system that essentially ends U.S. taxation of profits earned outside the country.
Companies such as Google Inc. and Cisco Systems Inc. have been urging Congress to enact a repatriation holiday, which would cost the government $78.7 billion in forgone revenue. A larger group of U.S.-based multinational corporations is lobbying for a territorial tax system.
Norquist said Perry's 18 percent goal would improve on the record of the George W. Bush administration, which cut taxes and not spending.
"There was no North Star for what they were trying to do," Norquist said. "This tells you what the goal is, what we're trying to do. It's huge. Just thinking that way changes the world."