Newt Gingrich Tax Plan Adds About A Trillion Per Year To Deficit: Report

WASHINGTON -- Newt Gingrich's tax plan would add about $1 trillion to the deficit in a single year, according to a detailed analysis of his proposals.

The left-leaning Tax Policy Center, which has also broken down the plans of other GOP contenders, finds that Gingrich's offering for tax reform would be great not just for the top 1 percent, but also for the top 0.1 percent.

"While most of the nation's lowest income families would get no benefit from these tax cuts, the top 0.1 percent (who make an average of more than $8 million) would get about a quarter of the windfall," wrote TPC's Howard Gleckman in a post about the analysis.

Such news might not upset conservative Republican primary voters, but the assessment of the deficit could prove more alarming.

If current tax policy stays in place -- and the Bush-era tax cuts are retained -- Gingrich's plan would add about $850 billion to the deficit in 2015 alone, according to the report. If the current tax law remains in place -- and the Bush cuts expire after next year -- the jump in the deficit for 2015 would be $1.3 trillion.

Gingrich would allow people to choose whether to keep the current tax system or file a 15 percent flat tax. Corporations would pay a 12.5 percent rate.

Under the current tax law scenario, if the Bush tax cuts expire, the richest Americans would see taxes drop by about 38 percent, or more than $750,000.

Gingrich's campaign did not immediately respond to a request for comment.

 

 

Comments

[Hanover Fiste]

11:00 PM on 12/13/2011

"burning out his fuse up here alone...."

[OneInEveryFamily]

01:21 PM on 12/13/2011

It is a bad plan. No question, but the numbers in this article are not correct.

Revenues would decrease by 1.3 Trillion in 2012. The deficit does not increase by that amount. The deficit increases by 850 Billion.

I am not defending the plan. It is terrible. I am just saying that if you actually use a source, go with the real numbers.

[Desnoxvu]

11:26 AM on 12/13/2011

Gingrich will make policies that can get him richer once out of office. People like him deal in favors witht he elite.

[doctorzap]

11:11 AM on 12/13/2011

-Gingrich would allow people to choose whether to keep the current tax system or file a 15 percent flat tax. Corporations would pay a 12.5 percent rate.-

Wait a minute. I thought corporations are people, too. So why would Blingrich give them a preferential rate over all the other taxpayers?

Ah-h-h, silly me. Snootie is a 1%er and they take care of each other, especially if they are Regressives. Never mind.

BTW, these flat tax numbers that these pinheaded candidates keep barfing up will make our budget problems even worse. Not that Snootie or his brethrens care one whit about the welfare of the middle class.

[Nikki Lanigan]

10:56 AM on 12/13/2011

It amazes me the amount of party bashing I am witnessing in these comments. I am astounded in reading the rhetoric, and fallacies. You people better wake the heck up! There are no party lines, as you are getting screwed by BOTH sides of the same coin. Do your research, look into your precious DEMagogues & REPUGnicans. RON PAUL 2012

[WiltonDiary]

11:06 AM on 12/13/2011

Ron Paul is 90 years old and hasn't had a good idea for 75 years.

[Nikki Lanigan]

06:34 PM on 12/23/2011

Oh yeah..that was brilliant *rolls eyes*

[James2039]

10:42 AM on 12/13/2011

Dear Democrats,

We don't want Gingrich. Will you please take him?

Maybe he could start his own party.

[MrEMT]

10:28 AM on 12/13/2011

If the GOP would simply be honest about who their constituents are, it would make all this a great deal easier.

[blueagle8u]

09:54 AM on 12/13/2011

And NOBODY who is a GOP supporter apparently sees that as the wealhiest get bigger and bigger Tax Breaks,the country(due to less revenue) tanks faster into the abyss! TRILLIONS in revenue have been lost since the Bush Tax cuts.
THIS WAS SUPPOSED TO HELP CREATE JOBS! WHERE ARE THE JOBS???

[Nikki Lanigan]

10:44 AM on 12/13/2011

The government CANNOT create jobs. When is anyone, regardless of their party support going to understand this fact? When is anyone going to figure out that if you don't give two squirts about the people that are dying in these illegal wars, then can you not get the fact that it is costing this country trillions that we don't have?? I do not support Newt, but it's statements like this that have to be addressed.

[WiltonDiary]

11:07 AM on 12/13/2011

The "wars" are not illegal. If they were the Republicans wouldn't be funding them, besides one war is over and you can't admitt that.

[relentless63]

09:53 AM on 12/13/2011

No problemo! He'll just take those poor kids out of classrooms, book them into menial labour jobs, get rid of those unions and save a bundle. The rich will get richer and the poor will get newly constructed Poor Houses.

[madame48]

09:32 AM on 12/13/2011

yup...corporations pay 12% while the head janitor pays 30%...to pay for the country's institutions the corporations NEED to make their money....from defense & the court system to ports, airports & an educated workforce, the corporations& investor class get a to be the freeloaders off wage earners

[gdauth]

08:36 AM on 12/13/2011

Newt is a historian, which means he probably failed math.

[Skunkman]

08:03 AM on 12/13/2011

Other than Rick Santorum, each of the candidates has already spent more than an average American household earns in a lifetime. Now lets put those youngsters to work. Right Newt?

Mike:

[gdauth]

08:38 AM on 12/13/2011

You bet, those little slackers have been milking society for far too long. To the coal mines with them.

[madame48]

09:34 AM on 12/13/2011

I expect to see Newtie's grandkids working in the meatpacking plants, and off that public school gravytrain

[Skunkman]

06:05 PM on 12/13/2011

Hi gdauth: Newt is a Xmas treat for the little ones. lol

Fanned & faved

Mike:

[Nikki Lanigan]

10:46 AM on 12/13/2011

Oh? Do you have proof to back that statement up?

[WiltonDiary]

11:09 AM on 12/13/2011

Public knowledge do you Google?

[Periwinkle]

07:15 AM on 12/13/2011

That's the plan. Republicans run up the bills and leave them for the Democrats to pay.

[wordsalad12]

09:46 AM on 12/13/2011

so that when the GOP loses its hold on power each time, they can turn around and bash the Dems for the GOPs deficit. And the Dems have never gotten the hang of messaging in the media. it is sad! the Bully and the nerd. Guess who gets bashed up. Everytime.

[JDZSB]

05:55 AM on 12/13/2011

There is an obsession in this country about tax rates and what is a fair income tax concept. It just goes on and on but there is never a consensus on what is meant by FAIR. Is it fair to have more people NOT paying federal income taxes then paying but still reap all of the same benefits of those paying taxes? How much of one's hard earned income should be taken by the government to decide how to spend? When you stack income taxes (city, state, and federal) with state sales taxes and government fees and indirect taxes, the amount of money confiscated by the various levels of government can be as high 70% of a family (both working) grossing over $250,000 per year. So is it fair for government to take 70 cents of every dollar earned? There are families that make under $100,000 per year that pay little if any federal income tax because of a myriad of tax subsidies allowed for all kinds of "social" reasons (number of dependents, disabled, special children, foster care, etc). It goes on and on. So, what is a fair tax structure? Obama wants wealth redistribution which is not fair. Why not a flat tax on all income? Period...no tax loopholes, little if any deductions, etc. just one tax rate for everyone. The more you make the more taxes you pay.

[madame48]

09:38 AM on 12/13/2011

yup, I'll admit it. my 92 year mother doesn't pay taxes. Maybe you can take it from her heart medicine money...oh and my profoundly handicapped brother doesn't pay taxes, maybe we could roll him out to the street and put some pencils in his hand(although he can't actually HOLD them) so he could pay some taxes....I feel sorry for you

[wordsalad12]

09:47 AM on 12/13/2011

society is not fair, you have no clue what fair is, and yet you talk about fair taxes, really? What a sadsack.

[miketothad]

04:28 AM on 12/13/2011

It's practically impossible to insult the intelligence of today's "conservative".

[Querent]

05:40 PM on 12/13/2011

If you mean it's practically impossible to understate a conservative's intelligence, then I agree with you. But it's actually really easy to insult a conservative's intelligence. All you have to do is start listing the political positions which make up conservative orthodoxy.