Newt Gingrich's tax plan does give almost everyone a tax break, but some more than others. Can you guess which ones?
People earning more than $1 million a year would receive an average tax cut of $613,689 in 2015, compared with what they pay now. That change would boost their after-tax income by 28.7 percent and put their average tax rate at 11.9 percent.
Gingrich’s plan would cut taxes for people in all income groups and raise them for no one. For households earning between $50,000 and $75,000 a year, 91.3 percent would receive tax cuts averaging $1,847, boosting their after-tax income by 3.1 percent.
So those who have flourished by what America offers get a savings of almost 10 times that over the families that are barely living in a comfortable margin? That really doesn't seem all that fair - does it?
And the millionaires aren't the only big winners here:
He would drop the corporate tax rate to 12.5 percent from 35 percent, allow businesses to write off capital expenses and eliminate taxes on capital gains and estates, according to his website.
How can our country survive by such a huge decrease in income? The answer is simple - it can't!
The economic plan proposed by Republican presidential candidate Newt Gingrich would add $1.3 trillion to the U.S. budget deficit in 2015 alone, according to an analysis by the nonpartisan Tax Policy Center.
$1.3 trillion added to the deficit in one year alone? What happened to all these budget hawks on the right?
As I have pointed out numerous times before, our budget is deadlocked. The right doesn't want to cut social security or defense. We can't stop paying off the interest on our loans we already have and those items right there basically eat up the current income levels.
The only hope for a plan like Gingrich is that it goes into affect and the next day we see tons of new businesses automagically spring up in the U.S. That is a very dangerous gamble and one that would really cost us in the future.
It's also a gamble we have seen numerous times in the past.
We get a Republican in the White House that pushes through these massive tax cuts. The people are happy. I mean, who doesn't enjoy more money? Then the debt skyrockets (see Bush and Reagan) and a Democrat gets elected. The Democrat realizes that we have to raise income to get that debt down, which means more taxes (boooo - less money!). The Republicans then go on the attack and say "hey they just raise your taxes!".
It's a vicious cycle we have been in for 3 decades now and one that we can not continue to sustain. We need common sense thinking on taxes and the budget. Do we want to cut taxes? Fine then we got to stop paying more in defense than the rest of the world combined per year. We need other cuts on things like Social Security. Both of these issues are cancerous and won't be done, so we are deadlocked.
Don't believe the hype you hear from candidates on any side of the aisle. The only President we have had in recent history that was able to balance the budget was Clinton, with help from a Republican controlled Congress. The last Republican President to do the same was Eisenhower and a lot of Republicans have disowned him. Eisenhower achieved this with a Democratically controlled Congress.
To balance a budget isn't a in the power of one man or one branch - it requires cooperation from both the executive and legislative branch. The only way we will get a balanced budget again is to have a White House and Congress work together. That hasn't happened since the 90's and given our current political climate I don't know when it will happen again.
I bring this up because Newt Gingrich is one of the most divisive figures in American politics. Look at what he has done to the Republican party alone! Does anyone really think he can go into the White House and bring Congress together with him to pass a plan like this take the tough steps necessary to get our nation to live within it's means? If you do then I got some ocean front property in Hell I want to sell you! It won't happen, so this plan by Gingrich is as solid as any marital vows he takes. They don't mean shit!