Gingrichonomics

   An editorial in Bloomberg calls Gringrich's ideas on economics "..  a mixture of the alarming, the implausible and the banal." On taxes the article notes how Gingrich panders to the well off and corporations.
   Gingrich says he would cut the corporate income tax rate to 12.5 per cent from 35 per cent. He also would make the Bush tax cuts permanent. Gingrich would go further and eliminate taxes on estates, dividends, interest income and capital gains. He would also have a flat tax of 15 per cent. If you did better on the old system you could opt for that.
   The Tax Policy Center has estimated that in 2015 Gingrich's tax reductions would reduce government revenue by 1.3 trillion compared to the present system. Gingrich  complains that the calculations do not adequately factor in the huge growth rate all his tax cuts will cause.
   How much the economy might grow is uncertain but what is certain is that Gingrichonomics is great for the rich. The plan is estimated to save the top .1 per cent of taxpayers an average of 2.3 million each. Mitt Romney pointed out that under Gingrich's plan he would have paid no taxes in the last two years. Perhaps the editorial is a Romney inspired creation! For much more see the Bloomberg editorial.


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