Tax rate deductions and eliminations:
An optional 15% flat tax; Federal corporate tax rate of 12.5%; Zero capital gains tax rate; No death tax; Immediate expensing for capital investment;
The plan would also slash regulatory costs and barriers, including:
Repeal of Dodd-Frank; Repeal of Sarbanes-Oxley; Repeal of Obamacare; Repeal CAFE Standards; Replace the Environmental Protection Agency with an Environmental Solutions Agency; Modernize the Food and Drug Adminstration to enable new medicines to be developed and brought to the sick far more quickly and far less expensively.
More changes:
Personal savings, investment and insurance accounts eventually expanded to finance all the benefits financed by the payroll tax today, ultimately displacing that tax entirely. Reform of the Federal Reserve to mandate that it follow a price rule to maintain a stable dollar without inflation.
The Fiscal Associates score projects that Gingrich’s supply side program would restore the economy to the long term economic growth path of 1947 to 2007, when the economy averaged 3.2% real growth per year, up from the current trend predicted by CBO of 2.4%. That catch up would involve average real growth over the first 10 years under the Gingrich program of 4.4% a year.
That booming economic growth would produce 6.6 million jobs in the first two years alone, reducing the unemployment rate ultimately to 4.6%. The overall results from the Gingrich path would be a 20% higher standard of living for the American people compared to the Obama path, indefinitely into the future.
This findings are consistent with the Reagan expansion resulting from similar policies.
Gingrich’s Plan Contrast with Obama’s Budget for 2012:
The fourth consecutive trillion dollar deficit, while the highest deficit previously under any other President was less than half a trillion;
Further job-killing tax increases, beyond those he has already enacted into law for next year;
Continued increases in federal spending every year, totaling $3.795 trillion in 2012, an increase of over 27% during his first term alone, up another $193 billion from the last year.
President Obama’s own budget proposes that spending to continue to soar by 2022 to $5.820 trillion, the highest spending in world history. Over the next 10 years, President Obama proposes federal spending totaling $47 trillion… in his own budget!
Projected national debt held by the public to total $11.6 trillion for 2012, double the national debt of $5.8 trillion in 2008!
Consequently, by Election Day 2012, Obama will have doubled the national debt, in just one term of office. In that one term, he will have added as much to the national debt as all prior Presidents, from George Washington to George Bush, combined!
Newt. He is what we need right now. Newt/Palin ( my ticket)
Ping for later
Why is this campaign piece in “Breaking News”?
Bring it!
:)
I’m trying to think if there is anyone else besides Newt who has the “cred” to make such bold statements and be taken seriously.
Obviously, anyone who makes such claims is going to be immediately targeted as an empty boaster... but Newt seems to me to be uniquely positioned as someone who has a proven track record of making good on what would otherwise be outlandish claims regarding changing the direction of Washington.
He may be the only person alive who can put forth such a bold plan, and be immune to the inevitable ridicule, since he’s already proved he’s able not only to be visionary, but to effectively make his vision a reality.
Thanks for this thread.
Now that Speaker Gingrich has outlined his economic ideas, we the voters, have something of substance to discuss.
As a case in point, Newt plans to : “ - - - reduce federal spending to the level of revenues produced by a maximum jobs and growth economy - - - .” With this Newt is assuming that: 1.) there will be a rapid return (=within a year) to “a maximum jobs and growth economy,” or 2.) Federal overspending will continue until the economy catches up with Federal spending.
The very long history of Federal Government decision results demand that Federal Spending will continue to exceed Federal income for at least one Business cycle.
A better wording would be as follows: “ - - - reduce Federal spending to 10 % below the level of revenues produced in the average of the past two fiscal years.”
In that way EVERYBODY knows what the total Federal spending will be, and the Federal Checks will be reduced uniformly to all segments of the Federal Government.
Any surplus income will be used to pay down the principal of the National Debt, and NOT the interest on the Debt.
BTW, by leaving the 10 % reduction in each year, the United States Federal Government will be forced to privatize those Federally Mandated Entitlements that continue to lose money. That was easy!
Well, yeah, but then millions more will re-enter the labor force and the unemployment rate will rise, perhaps even as high as 8%!
1. We have been deficit spending for over 50 years - not once in all of those years did we ever spend ONLY what we took in in revenues.
2. If Newt wont cut “Social Security, Medicare, Medicaid, defense, debt interest, and federal employee retirement benefits” he has a major problem - the total cost of these programs exceeds current revenues (2.7 Tr vs 2.3 Tr) - add the “2007” levels of the remaining programs and you will still exceed 3 Tr. AND he wants to cut taxes as well! IOW he is expecting at least 700 Billion in additional revenues from “royalties” annually(!) within 4 years ...
3. Even if he does “roll back regulatory barriers to energy production, unleashing the private sector to maximize all forms of American energy production.” The Enviro-Wackos will clog the courts for decades before anything can be done - IOW, it is nigh impossible that this promise will bear fruit in time for him to “balance” the budget in his first term...
4. It is all fine and well to have a “Plan” - but that plan must be based on reality, not another version of “hope & change”! What happens when interest rates rise on our debt (and they will!)? We currently pay ~14% of revenues on interest (@ 2.7%). If that goes up just 1%, we will be paying close to 20% of revenues on interest alone (450 Billion) . Just 10 years ago, we paid 5.7% on our debt. Carried forward that would be 680 Billion or 30% of revenues! For comparison - the current DOD Discretionary Budget is 683 Billion ....
So what’s Newt’s position on algae as an energy strategy?
Bump!
An optional 15% flat tax? At least one candidate isn’t stuck on offering a progressive Democrat lite. Or Ron Paul, fail to do any GDP/Revenue projection.
Where would Newt best serve in President Rick Santorum’s administration?
He would make a great Chief of Staff !
I’m ready to reelect him already!
Newt has my vote...
Newt Gingrich is the ONLY candidate who has the ability and know how to save America, he's been there, done that.
Post whenever, and whatever you like about NEWT, Jim Robinson won't mind, and many of us (thicker skins),won't either. lol If I have not read it, to me it's BREAKING NEWS.