Posted on 01/28/2012 1:44:01 PM PST by SeekAndFind
Newt Gingrich has proposed a very aggressive, comprehensive, supply side, jobs and economic recovery plan. That includes an optional 15% flat tax, reducing the federal corporate tax rate to 12.5%, eliminating the tax on capital gains, abolishing the death tax, and immediate expensing for capital investment. The plan includes as well reforming the Fed to mandate that it follow a price rule to maintain a stable dollar without inflation.
It would also slash regulatory costs and barriers, including repeal of Dodd-Frank, Sarbanes-Oxley, and Obamacare, replacing the EPA, and modernizing the FDA. It would especially roll back regulatory barriers to energy production, unleashing the private sector to maximize all forms of American energy production.
Personal savings, investment and insurance accounts would eventually be expanded to finance all the benefits financed by the payroll tax today, ultimately displacing that tax entirely.
Art Laffer has endorsed this economic recovery plan as the most promising pro-growth package, saying, “Newt has the best plan for jobs and economic growth of any candidate in the field.” He predicts that the plan “would create a boom of new investment and economic growth leading to the creation of tens of millions of new jobs over the next decade.” I have also been a close personal advisor to Gingrich for several years now, particularly on economics, and this plan heavily reflects my views as well.
(Excerpt) Read more at forbes.com ...
What are the four ‘12 GOP POTUS candidates views on the Fair Tax?
Thanks SeekAndFind.
There is half the battle right there.
This would be a great plan. For all of you investors, I would recommend paying attention ahead of the election - you could see speculators getting in early ahead of a Gingrich win. If it looks good for Gingrich, you’d want to be fully invested by Election Day.
Remember how Obama talked down the market right after his election victory? 401K plans took a huge hit and Obama was pleased with himself. Look for the same thing to happen - in reverse if Newt wins. I’m telling you, if a plan like this has even a chance of being implemented, the market could go vertical.
Comments welcome.
This would be a great plan. For all of you investors, I would recommend paying attention ahead of the election - you could see speculators getting in early ahead of a Gingrich win. If it looks good for Gingrich, you’d want to be fully invested by Election Day.
Remember how Obama talked down the market right after his election victory? 401K plans took a huge hit and Obama was pleased with himself. Look for the same thing to happen - in reverse if Newt wins. I’m telling you, if a plan like this has even a chance of being implemented, the market could go vertical.
Comments welcome.
Newt said he’d cut 40% of the government, that should go a good part of the ways too!
I don’t know if he’ll go any further than that... depends on his schedule for the second day in office.
[i say tongue-n-cheek - though, if this pans out, he has to be held to his 40% statement]
Good article.
Still 10 years is a long time to wait for a balanced budget. Even if we cut current deficit accrual in half, its going to take a long time and a lot of work to pay back $20 Trillion US.
We have really cheated my children and their children.
First you need a budget LOL
I was going to say “You can say that again”
but you did already :)
JB
Actually Newt don’t have “A” plan he has the ONLY plan..
No other candidate has has a ‘real” plan for anything..
Newt has layed out “openers”.. the “antie”.. the beginning..
No one can lay out the entire “plan”.. for uncharted “waters”..
America has been de-constucting DE-moralized since the Civil War..
Thats when State Rights were blown away..
I’m not sure even Newt has exactly what must be done completely..
He cannot say that the fear mongers would kill him off, but its true..
America has 3 choices.. Newt, nOOt, and Neuwt..
Fooling around with Romney is childish.. and with Paul teenager logic..
Santorum cannot “inspire” and is underkill..
ONLY Newt can inspire with proper reconstruction...
-OR- America has not had it belly full of Negrodamus.. and his RAP..
America WILL GET the President it deserves..
Divine providence is deeply at work.. I believe..
From 50,000ft this plan looks good on the tax side, but I don’t see much on the spending side. A 20 trillion dollar debt is a real burden to carry. Just paying 3% interest on the debt is 600 billion a year. Ouch. Also worry some is the assumed growth of over 4%. That could be a problem with the world economy going into recession and EU melting down. But hey at least it is a plan that might work, and if Forbes likes it can’t be all that bad.
I agree that it would be good for investors. I’m afraid the OWS movement will focus on that, however. Newt wants to reduce Corporate tax rate to 12.5% and eliminate capitals gains and dividends as taxable income. That is going to sound like he is all for the ‘rich’ guy and nothing for Joe Sixpack. Those of us that understand economics and history and the Laffer Curve know the profit incentive lifts all boats and benefits the worker class, but the OWS movement proves most Americans do not have a clue how economics works.
I think Newt would have been smarter to say “Capital Gains and Dividends will no longer get preferred tax treatment, they will be taxed just like any other personal income — at 15%”, and “There will be no special tax treatment for Corporations, their profits will be fully taxed at the personal level as income for the shareholders at that person’s maximum tax rate”.
Most people wouldn’t even realize this meant completely eliminating Corporate Income Taxes and all the overhead involved with it, including most of the lobbying incentive — why try to get tax credits and exemptions when there is no longer a Corporate Tax ? Combine this with shredding the regulatory straightjacket and America would have the best business environment anywhere.
According to the article, the first step is to reduce all spending across the board to 2007 levels except for SS and Medicare. That resets the spending levels $500B lower than today and eliminates half the deficit immediately. Then the economic growth eliminates the rest of the deficit. In the 90’s, Newt’s plans eliminated the deficit in 3 years but it is much further out of control now.
It would also slash regulatory costs and barriers, including repeal of Dodd-Frank, Sarbanes-Oxley, and Obamacare, replacing the EPA, and modernizing the FDA. It would especially roll back regulatory barriers to energy production, unleashing the private sector to maximize all forms of American energy production.
Personal savings, investment and insurance accounts would eventually be expanded to finance all the benefits financed by the payroll tax today, ultimately displacing that tax entirely.
Like, wow.
You might want to reign in the drug war just a tad, too, Newt. And TSA. You know something a little shy of executing people for marijuana, and allowing anal and genital hand rapes of people at airports.
Bt all in all, it's definitley the right direction - and light years ahead of the communist meltdown biblical endtimes proposed by the Rats & Mitt.
Man, I wish THIS is what we were talking about instead of spending hours bemoaning the Drudge Report.
An unknown pizza man catapulted to the front of the race simply because he dared to talk about massive tax reform.
Gingrich has a good plan, but he has been talking about moonbases.
If he would just keep bringing the discussion back to his economic plan, all the rest of this noise would eventually be drowned out.
He needs to persuade more people that he can beat Obama. That is all voters care about this cycle. Promoting his economic plan would help on that point.
From your lips to God’s ears!
It’s hard to understand why these candidates, especially Newt, don’t get this.
The OWS folks will all be too busy working to care about any of that stuff.
One thing that Newt said the other night during the Florida debates: When questioned by an unemployed woman who had lost her job and health insurance and was wondering, “What are you guys going to do for people like me?” Newt’s answer? “The most important social welfare program in America is a job”, going on to say that his administration would make it far easier to do business so that jobs were easier to come by.
Even the OWS folks appreciate a job when they have one.
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