Newt Gingrich, like Rick Perry, believes in an optional flat tax plan. However, Gingrich wants to make the corporate tax only 12.5%, compared to Perry’s 20%. Currently, the corporate tax is 35%. Gingrich would like a 15% flat tax on individual taxpayers, as opposed to Perry’s 20%. 15% is the average tax rate for individual taxpayers already. The wealthiest citizens are paying 35%. It is almost as if Rick Perry and Newt Gingrich are contestants on “The Price is Right,” and Gingrich is trying to outbid Perry.
As I discussed in my blog on Rick Perry’s tax plan, huge tax cuts like this will result in adding trillions to the deficit. America’s current deficit is intimidating enough. I could go over the arguments that supporters are probably making that this will create jobs. However, I have a feeling that all of these tax plans are making that very point. Right now, our government is fighting over whether the currently lowered payroll tax cuts should be extended. Those advocating all these tax plans that dramatically lower taxes for the wealthy and businesses are also contending that payroll tax cuts are not creating jobs. They are the exact people that are concerned that cutting payroll taxes hurts Social Security benefits. So, how exactly will this country afford to pay for the dramatic tax cuts that Gingrich wants?
How about this, Congress? Instead of trying to distract us with risky tax cut proposals, you work with taxpayers! Treat them like citizens instead of criminals. Help them file their taxes correctly. Make it easier to get into tax resolutions, and scale back the aggressive collection actions.
Furthermore, I’m not sure I would take any tax plan seriously from a man who has his own shady history with tax fraud. Gingrich has a way of making big promises, and then running off when things get tough. Just ask his last wife.