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.