Best news yet in this election cycle.
Fill up the House and Senate with people committed to serious expense cuts.
.
This doesn't work...
Posted on 12/19/2011 9:36:44 PM PST by Jim Robinson
(Reuters) - Newt Gingrich's tax plan could blow a gaping hole in U.S. government revenues, while preserving special interest tax breaks, said economists aligned with the Republican presidential candidate's own party.
While other Republican contenders have made headlines with their tax proposals, Gingrich quietly released his months ago. It calls for slashing the corporate rate, giving individuals big tax breaks, and retaining many major deductions and credits.
Conservatives have applauded his proposal to lower rates, but economists on both the left and right have said his plan would drain federal coffers in the near term, making it impractical amid concerns about the federal budget deficit.
"The revenue loss in this plan is absolutely staggering," said Alan Viard, an economist at the American Enterprise Institute, a conservative think tank.
Viard based his assessment on an estimate by the Tax Policy Center, a left-leaning think tank, that he called reasonable.
The center forecast that Gingrich's plan would slash government revenues by at least $850 billion in one year, more than a third of the $2.3 trillion in 2011 government revenues.
A Gingrich adviser refuted the center's estimate and said the candidate's plan was not designed to be revenue neutral, but to be "growth maximizing."
"They made up the details," Gingrich economic adviser Peter Ferrara said of the TPC study. "They also did not take into account the impact of lowering rates on economic growth."
The idea that tax cuts can pay for themselves through growth is a controversial notion, dismissed by all but a handful of economists, but it is deeply entrenched in the Republican Party.
(Excerpt) Read more at reuters.com ...
“Analysis: Gingrich tax plan starves government, say economists”
He’s got my vote!
“The revenue loss in this plan is absolutely staggering,” said Alan Viard,.....”
And the amount of money left in the pocket of you and me is fabulous!
Increasing government spending only directs resources away from those best equipped to create new wealth: The rich who have created wealth before and ironically who they demonize because they are the rich. This false hope, that spending will bring economic success, only leads to disaster. It is also a tool by America's enemies to cause disaster to America's status as a world power.
Our truth that we need to make perfectly clear to the electorate is that only markets, free of government involvement find the answers to create new wealth.
but NO mention is made of cutting SPENDING
///////
mustbeindefineprint.
Best news yet in this election cycle.
Fill up the House and Senate with people committed to serious expense cuts.
.
This doesn't work...
Yes he does.
One of the greatest needs is to cut spending. It does not appear that Newt wants to do much of that.
People like the CBO and others like to throw out a lot of numbers about what deficits will be a few years out, but they are just fantasy really. There are too many variables. For instance if treasury interest rates shoot up to just 10 percent then the interest on the debt might eat up all of our GDP. Then what? The only real solution is to cut all over spending immediately. And then start working on paying it down before interest rates rise. Otherwise we will have a bankrupt USA in short order.
The republicans had a chance to do this by refusing to raise the deficit(Instant balanced budget), but they are too afraid of the political ramifications. Yet there is no other way out in the long run. Or not so long run in this case. Paying the interest on the debt is in itself eating up GDP and productivity. In fact only a small fraction of every dollar borrowed at this point is productive to the economy. As in less than 10 percent. That is what happens when you play the borrowing game to long. And it steals massively from future GDP.
Only a radical cut in spending can save us according to the math. And even that is questionable at this point. Unfortunately for all those people who live off from that borrowed money, and even those that don’t then we cannot avoid a great pain that will come from going cold turkey. But that pain would end in time and things would get going again in a real economy that is not borrowed. Where demand is not being pulled forward. It would be better than a fatal and unrecoverable crash. What they call a sudden stop in the economy. And that is what is coming soon if we don’t stop the insanity. Who knows- it is not impossible for that crash to happen even before the 2012 elections. Lots of variables that we can’t predict. Yet, while our situation is becoming much more precarious every day.
You won’t find any of the candidates explaining that. And yet if you can’t be sure that they understand such mathematical fact then the end result is quite doomy. Newt is just like the rest in that he just does not get it in a practical way. But time is pretty much up. We simply don’t have time to wait for the effects of decreasing taxes(although I agree they are far to many). They will not be realized in time. And they will not offset the trillions that are still being borrowed. And even if they could then they would just borrow more. We need to stop the borrowing. It is today or never. Hannibal is at the gate.
They are going to talk me into voting for him.
“Analysis: Gingrich tax plan starves government, say economists”
Only if they can’t borrow the difference.
You can’t “starve” government.
If that worked it would be starving right now.
The simple fact is if tax revenue doesn’t cover their spending they just borrow and print it. One way or another they spend what they want with little restraint. Printing money is a hidden tax. It steals from those who saved.
And the greatest spending items are the so-called entitlements. Gingrich is proposing ending the welfare state. For example, not only repealing ObamaCare but privatizing social security and medicare and sending them back to the states and the people.
“The Reaganite wing of the Republican party knows it to be so.”
Sadly, Jim, though you are right, the Reaganite Wing is the short one so the damned thing just flies in a circle. Somehow a way has to be found to cut off a big piece of the “Establishment Wing.”
Not sure I want to starve it, but it definitely needs to go on a DIET.
Thanks onyx.
Unless Newt deals with the above, he’s rearranging the deck chairs on the Titanic.
Where is the chart that predicts the cost of government if it is starved and all unconstitutional bureaucracys and agencies are disbanded and declared null and void? I don’t see it here.
Yep, the beast must be starved until it bows to its master, then take away its ability to raise funds at all, balanced budget ammendments in all states, any surpluses could then be used for the federal g’s minimal support...
yep, strip them of any means of raising funds entirely, other wise they will tax us to pay for bankrupt states...we need to have the states fund the smaller federal gangsta after balancing their budgets..if no funds, the federal g will have to just starve...awww poor babies..
Ask the Heritage Foundation. It’s their chart.
If you starve the government, you also starve the think tanks who rely on government flunkies for data and opinions. This is self-serving howling by elitists who are disturbed that their government gravy train might be derailed.
He wants zero-based budgeting, every dollar must be justified domestically and in foreign aid. He wants a balanced budget amendment. He wants to hack job killing regulation and will kill the existing EPA to do it and mandate its replacement consider economic impact. He has a "date certain" to secure the border and step-by-step plan to break down the job magnet for illegals which will, as we see in AL, lowers unemployment for Americans.
He's not trying to appease the establishment with a "revenue neutral" tax plan. He outlines how he'll cut waste, inefficiency and duplication all across the board. He's for giving American's choices on tax plans (Hong Kong model), on Medicare, on Social Security (Chilean model).
His agenda is a threat to the central planning mentality that permeates the ruling elite inside the beltway.
That's why the establishment will do everything to give us milquetoast Romney and would cheerfully lose to Obama. I'm suspicious of our "betters," those "elite" few early state voters who have dictated the wheat and the chaff to the rest of us for over 30 years.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.